ItN Nanovation will initially hold a 17.5% stake in Saudi Water Nanovation LLC, with an option to increase this stake to 40% until 2015.
Saudi Water Nanovation will distribute CFM (ceramic flat membrane) systems and accessories in the MENA (Middle East & North Africa) region and produce these locally at its own facilities in Saudi Arabia. The joint venture’s products will be used in particular for prefiltration in reverse osmosis for the treatment of drinking water.
A business licence will now be obtained from the Saudi authorities in order to formalise the joint venture.
ItN Nanovation will receive US$2.35 million in advance for their production expertise. The German company will use around two-thirds of this to acquire its stake in the joint venture. ItN Nanovation will also receive revenue-based royalties, and will participate proportionally in the earnings and value development of the joint venture.
The joint venture plans to establish its own production facilities, which in their final construction phase scheduled for 2014 will offer three times the capacity currently available to ItN Nanovation. The joint venture should start production in 2013.