Alexium International Group Ltd (ASX:AJX) has signed an agreement with one of the world";s leading household apparel companies.

The deal will see the customer use Alexium";s Alexicool™ product in their manufacturing of apparel with wicking and antimicrobial technology.

Alexicool™ is an environmentally friendly, phase change material solution that gives fabrics a cool-to-the-touch feel.

Alexium has been chosen as a supplier for a global launch across more than five brands of inner and outer wear apparel.

Michael Schwartz, vice president of sales, commented: 'That";s a strong sign that Alexium has moved from being on the edge of a trend to a recognized mainstream standard for innovative, environmentally friendly chemistries.”


Background

Alexium holds over 20 patents across nine countries for environmentally friendly chemistries and a process developed initially by the U.S. Department of Defense, which allows surfaces to become fire retardant, water proof and oil proof.

Applications under development include but are not limited to textiles, packaging, electronics and building materials.

Alexium";s fire retardant chemical treatments are currently marketed for different fabric markets under the Alexiflam™, Alexiflam FR™, Alexiflam SYN™, Alexiflam NF™, Alexicool™, Alexiflam PB™, and Alexiflam AD™ brand names.


Alexicool™

Alexicool™ is a phase change material (PCM) that makes fabrics that ordinarily retain heat, feel cool to the touch after treatment with Alexicool ™ whilst also ensuring durability of the fabric.

In addition to bedding, Alexicool™ has applications for apparel, performance fabrics and other sizable markets.

Alexium is adding toll manufacturing locations worldwide to meet rising demand for Alexicool™.


Expansion opportunity

The U.S. based company has identified Alexium as a performance solutions supplier for more than five brands of inner wear and outer wear apparel over the next two years.

It will be working with Alexium to qualify the use of Alexicool™ with various fabric types in two U. S. plants, followed by expansion to global production facilities.

Alexium and the manufacturer are collaborating on Alexicool™ applications for more than a dozen fabric types and blends, with more application opportunities being presented each week.


Analysis

By signing a new client that is a major international player in the apparel industry, Alexium is showing that it is emerging as a mainstream player in its industry.

Each new purchase order represents an opening for Alexium to enter a new industry and create a new partner, which represents further growth and expansion as evidenced by this new agreement.

Alexium was able to reach this agreement in just over three months after introducing products to the company showing the near term growth potential the company has.

The continued growth of revenue through 2H16 purchase orders shows that the expansion of manufacturing and production capacity undertaken in 1H16 is proving to be a good investment.

The company now stands prepared to meet the incoming ramp-up of customer orders in 2H16.

Customers throughout September alone have come from the bedding, carpet, automotive and apparel industries.

Alexium";s share price has rallied over 25% throughout September to date, currently trading at $0.62.

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