Svenska Rotor Maskiner (SRM), the centre of excellence for compressor technology within Opcon, the energy and environmental technology Group, today received an additional order for development from the listed Chinese company, Fuijan Snowman, Co. Ltd., Fuzhou, Fuijan, China. The order, worth SEK 14 million, concerns development of a further series of modern, energy-efficient cooling compressors for production in China. In addition there will be licensing revenues in future spread over 10 years with the option of extending the contract. Licensing revenues are linked to the customer’s future sales and have the potential to reach significant amounts.
The order comes as Fuijan Snowman Co. Ltd’s subsidiary, Hong Kong Snowman Technology Ltd subscribes for a further 30,000,000 shares in Opcon in a direct placement, raising the company’s ownership in Opcon to 17,2 per cent.
The order is a further stage in the comprehensive development assignment that Opcon has been performing on Snowman’s behalf since the summer of 2011. In 2013 development sales to Snowman almost tripled to exceed SEK 30 million while Snowman also became a 10% owner of Opcon in 2013.
“We have a very positive view of the development of our relations with Snowman as they continue to place major development assignments with us. This further reinforces the development of the long-term strategic collaboration that has started and we continue to tie the two companies closer to each other”
All of the development assignments agreed to date and performed for Snowman are linked, like the order announced today, to licence agreements. Opcon expects the first license revenues to begin flowing as planned in 2014. Opcon has previously made the assessment that license revenues from Snowman will rise year on year to eventually exceed SEK 100 million in total over the next ten years. Today’s order further reinforces this picture.
“We have a very positive view of the development of our relations with Snowman as they continue to place major development assignments with us. This further reinforces the development of the long-term strategic collaboration that has started and we continue to tie the two companies closer to each other,” says Rolf Hasselström, President and CEO of Opcon AB.
Svenska Rotor Maskiner AB (SRM) is a part of Opcon’s Renewable Energy business area. In 2008, SRM celebrated 100 years of industrialization and development of technology for effective and resource-efficient energy usage. SRM was founded in 1908 as AB Ljungströms Ångturbin, in order to develop the double rotation steam turbine which was invented by Birger Ljungström and that was later sold to what today is the turbine manufacturer, Siemens Industrial Turbomachinery AB. For over 100 years, SRM has developed a number of products for the world market and since the 1930s has developed compressor technologies, with major licensees such as Howden, Kobe Steel, Atlas Copco, Hitachi, IR, Carrier, York, Trane, Kobelco, among others. This technological basis today forms an important part of the Renewable Energy business area’s efforts in Waste Heat Recovery and production of electricity from waste heat, including Opcon Powerbox.
The Opcon Group
Opcon is an energy and environmental technology Group that develops, produces and markets systems and products for eco-friendly, efficient and resource-effective use of energy.
Opcon has activities in Sweden, Germany and the UK. There are around 150 employees. The company’s shares are listed on Nasdaq OMX Stockholm. The Group comprises one business area:
Renewable Energy focuses on the following areas: electricity generation based on waste heat, bioenergy-powered heating and CHP plants, pellets plants, handling systems for biomass, sludge and natural gas, industrial cooling, flue gas condensation, treatment of flue gases and air systems for fuel cells.