Synthesis Energy Systems, Inc. (NASDAQ:SYMX) Joins Hands With Zhangjiagang Chemical
The $116 million market capped Synthesis Energy Systems, Inc.(NASDAQ:SYMX) announced on 14th February that it would be partnering with Chinese coal firm Zhangjiagang Chemical Machinery Company to transform itself into a clean coal producer in the near future. The joint venture vehicle to be promoted by the two firms would design, manufacture and promote cutting edge technology equipment and consulting solutions for the huge number of coal and chemical based industrial units which have cropped up in China and other Asian markets in recent times.
JV Being Set Up
The Huston based firm Synthesis Energy Systems, Inc.(NASDAQ:SYMX) will be setting up this Joint partnership named “ZCM-SES Sino-U.S. Clean Energy Technologies Limited” through its 100 percent owned subsidiary SES Asia Technologies, Ltd. This newly floated firm is expected to provide new market access to the two firms thanks to the unique gasification technology that the JV is promoting with gusto in these emerging markets with burgeoning demand for clean energy.
JV Funding Patterns
China based Zhangjiagang Chemical Machinery Company will fund $16.5 million into setting up “ZCM-SES Sino-U.S. Clean Energy Technologies Limited” and will hold a 65 percent stake in this new firm. It will also take onus of the marketing and sales of the products in the vast geographies of China, and greater part of East Asia. Synthesis Energy Systems, Inc. (NASDAQ:SYMX) will open up its proprietary gasification process and attendant technology to the JV and will get a 35 percent stake in the newly set up JV.
Importance Of The JV to SES Prospects
Robert Rigdon who is president and chief executive officer of Synthesis Energy Systems, Inc. (NASDAQ:SYMX) underlining the importance of this JV to this firm has been quoted to have said that, “This is a pivotal point in our company’s history, and key to our global growth strategy, as we build upon the foundation of our two commercially operating plants.”