Business
Licensing agreement with Chinese OEM
Licensing agreement with Chinese OEM.
About this update from Xeros Technology Group Plc
[{"type":"text","content":"\n \nRNS Number : 9934U Xeros Technology Group plc 18 July 2018 \n\n18 July 2018 \n \nXeros Technology Group plc\n \nFirst \"Symphony Project\" licensing agreement signed with Chinese commercial laundry OEM\n \nXeros Technology Group plc (AIM:XSG), the developer and provider of water saving technologies with multiple commercial applications, has today signed a licensing contract with Jiangsu SeaLion Technology Development Co., Ltd, a wholly owned subsidiary of the market-leading Chinese commercial washing machine manufacturer Jiangsu SeaLion Machinery Co., Ltd (\"Sea-Lion\") at the annual China International Laundry Industry Exhibition. \n \nSea-Lion will integrate Xeros' proprietary technologies into its own commercial washing machines and sell them through its extensive distribution network in China, on an exclusive basis. The first sales are expected in 2019. Sea-Lion will be the first partner to incorporate Xeros' new XDrumTM technology. XDrumTM is a simple, low cost solution for OEMs to easily incorporate Xeros' patented water saving XOrbTM polymer technology into their machine designs.\n \nThe contract runs for a 10-year period with minimum annual sales targets agreed between both parties. Xeros will receive a royalty on both machine sales and on the multi-year service contracts signed between Sea-Lion and the customer.\n \nSea-Lion is a market leading manufacturer of commercial washing machines and laundry equipment in the China market and has worked closely with Xeros as the manufacturer of Xeros' commercial washing machines since 2013. Sea-Lion has sales and service offices in each of China's 30 provinces and in cities such as Beijing, Shanghai, Chongqing and Shenzhen, serving customers in the hotel, industrial laundry, hospital and dry cleaning markets.\n \nChina is a large and attractive market for Xeros' commercial laundry technology. Xeros' research indicates that approximately 27,000 commercial washing machines are sold in China every year and water rates are increasing significantly for industrial users across large parts of China. \n \nThe contract with Sea-Lion is part of the Group's strategy to commercialise its technologies with partners who have strong positions in major markets, enabling Xeros to make financial returns on its intellectual proper...