Sweden-based industrial measurement technology developers Mantex AB (publ) has signed an agreement with Austria-headed International technology group Andritz AG to establish a joint venture (JV) for the sale of the Mantex Flow Scanner for the pulp and paper industry. The planned joint venture will be majority owned by Andritz (51 percent) and will manufacture the Mantex Flow Scanner on license and sell on to Andritz.
According to Mantex that will retain 49 percent share in the proposed JV, Mantex will deposit certain assets in the company while Andritz will provide capital, financing of working capital and makes available its entire sales organization. The final agreement will be subject to approval by competition authorities and an extraordinary general meeting of Mantex for a final decision.
We see a good market potential for Mantex Flow Scanner. Thanks to our global market presence and distribution network, the product will have more potential for a commercial breakthrough, said Wolfgang Leitner, President, and CEO of Andritz.
Previously, Andritz’s Swedish subsidiary was an exclusive distributor of Flow Scanner for the pulp and paper and industry. The new form of cooperation replaces the original distribution agreement with Andritz AB.
Our assessment is that we will be able to achieve significantly higher sales volumes than if we continued as today and only had a distribution agreement, said Max Gerger, CEO, Mantex.
Mantex will supply the joint venture with its technology relevant to the field and an exclusive license for its application in the pulp and paper industry. Andritz undertakes to integrate the Flow Scanner system as part of its process management offering and to fund the joint venture’s need for working capital. The product sales from the joint venture to the end client are made via Andritz.
The agreement covers the application of the Mantex Flow Scanner for the pulp and paper industry only and not other applications of the same product. The patents that cover the Flow Scanner technology will be placed in a special Swedish company owned 90 percent by Mantex and the remaining 10 percent of the joint venture and then be licensed to the joint venture.
The final agreement will be subject to an extraordinary general meeting of Mantex shareholders for a final decision. The draft of the now entered cooperation agreement also means that Mantex establishes an attractive marketing and marketing cooperation model that can also be used for bioenergy and other applications.
This joint venture not only represents a breakthrough for our Flow Scanner, but also for a new and very interesting way to collaborate around a product to boost market penetration and sales, said Max Gerger.