Boston, MA 03/20/2014 (wallstreetpr) – Synthesis Energy Systems, Inc. (NASDAQ:SYMX) is a global provider of mainly technology used in energy and chemical industries. The company operates a subsidiary called Synthesis Energy Systems (SES), through which it has entered a joint venture with Zhangjiagang Chemical Machinery (ZCM).
SES mainly offers technology solution that help with enabling developing countries to benefit from clean and high-value energy from low-grade and low-cost coal. The company’s gasification technology ensures greater fuel flexibility for small and medium scale operations.
The joint venture licensing
The joint venture of Synthesis Energy Systems, Inc. (NASDAQ:SYMX) and Zhangjiagang Chemical Machinery (ZCM) has resulted in the formation of a combined entity called ZCM-SES Sino-U.S. Clean Energy Technologies Limited (ZCM-SES). The entity will benefit from the superior gasification technology from SES and the extensive market reach of ZCM. Already a general manger for the joint venture has been selected and will be unveiled once the board of directors of ZCM-SES meets.
Once the directors meet as scheduled, the joint venture hopes to hit the road running, now that an important milestone towards licensing of the business by the Chinese authorities has been secured. The government earlier this week approved a 20-year business license for the joint venture.
The parties to the joint venture announced that ZCM-SES will be operational once registered capital of the joint venture entity has been contributed and the government issues its final verification report.
Capital contribution and ownership
Synthesis Energy Systems, Inc. (NASDAQ:SYMX) through its subsidiary SES will contribute exclusive use of its gasification technology and acquire 35 percent interest in the joint venture. ZCM on the other hand will contribute total of RMB 100 million or US$16.5 million. This will give ZCM exclusive manufacturing rights and 65 percent ownership in the joint venture.
Towards the dream
Synthesis Energy Systems, Inc. (NASDAQ:SYMX) said that as they await to get things moving, it is currently working on seamless transition into the ZCM-SES joint venture while its partner is out sourcing for business opportunities.
