Manufacturer acquires minority interest and plans to participate in manufacturing joint venture
Los Angeles – September 2, 2015 – OriginClear Inc. (OTC/QB: OOIL), a leading provider of water treatment solutions, today announced that a Chinese precision manufacturer has initiated a planned investment of up to $1.5 million for a minority interest in OriginClear Hong Kong (OCHK), OriginClear’s wholly-owned master licensee for China. The first payment of $100,000 was made in accordance with a binding investment schedule.
The parties also agreed to launch a China-based joint venture (JV) under which the manufacturer will provide funding, and manufacturing infrastructure, while OCHK will provide technology, concept engineering, and worldwide sales opportunities.
The JV is intended to become the worldwide sole-source manufacturer of packaged Electro Water Separation™ (EWS) systems, sub-systems and accessories, while current and future OriginClear licensees will retain the right to integrate EWS into their own branded systems.
“We plan to work with our new partner to standardize manufacturing for volume distribution of EWS systems into a market hungry for new water solutions,” said Jean-Louis “JL” Kindler, OriginClear chief operating officer, and managing director of the Hong Kong subsidiary. “We are already receiving inquiries for large-scale units to be built in Asian markets before the end of this year and we are confident that our partnership can deliver well-engineered systems on this very short timeline.”
In 2014, the Chinese government announced that it plans to spend 2 trillion yuan, or $330 billion, on an action plan to tackle pollution of its scarce water resources. China has a fifth of the world's population but just 7 percent of its water.