Dallas, Texas 02/21/2014 (FINANCIALSTRENDS) – The $105 million market capped Synthesis Energy Systems, Inc. (NASDAQ:SYMX) has tied up with china based Zhangjiagang Chemical Machinery Company to emerge as a strong player in the clean energy vertical both in China as well as in markets abroad. The joint venture vehicle which has been registered as ZCM-SES Sino-U.S. Clean Energy Technologies Limited will be set up by firm’s 100 percent owned subsidiary SES Asia Technologies, Ltd. and Zhangjiagang Chemical Machinery Co., Ltd.
The tie up is being positioned as a WIN WIN deal for both the firms involved, since it provides synergies between the cutting edge gasification process and technology which has been patented by Synthesis Energy Systems, Inc. (NASDAQ:SYMX) and the huge market access and penetration that the Chinese chemical equipment manufacturer Zhangjiagang Chemical Machinery Co., Ltd. has developed over the past decade. The JV firm ZCM-SES Sino-U.S. Clean Energy Technologies Limited is expected to emerge as a leading player in the clean coal extraction vertical in the huge market of China and the other emerging markets of Asia like Indonesia and India.
The funding pattern of the JV indicates that Synthesis Energy Systems, Inc. (NASDAQ:SYMX) will be a minority stake holder with a 35 percent hold on company stock, where as the Chinese firm with its contribution of $16.5 million as upfront investment cost will hold a controlling 65 percent stake in the JV. Zhangjiagang Chemical Machinery Co., Ltd. will exercise complete hold over the manufacturing and marketing rights of the JV in China and other larger east Asian countries.
Expressing his happiness at the mutually beneficial tie up, that Synthesis Energy Systems, Inc. (NASDAQ:SYMX) Chief Executive Officer and President, Robert Rigdon 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. ZCM-SES will offer superior competitive advantages in the market by combining our proven technology with ZCM’s manufacturing, marketing and implementation capabilities.”