METAWATER and Rood Wit Blauw Holding enter capital and business alliance
METAWATER Co., Ltd. (Headquarters: Chiyoda-ku, Tokyo; President and Representative Director: Tomoyasu Kida; hereinafter referred to as "we" or "METAWATER") acquired 24.7% of the stock of Rood Wit Blauw Holding B.V. (hereinafter referred to as "RWB"), a Dutch complete water and wastewater treatment engineering company, in the form of accepting new shares through a third-party allotment and entered a contract for capital and business alliance on August 20, 2013.
1. Objective and overview of the capital and business alliance
As an environmental water engineering company, METAWATER has developed and supplied to water and sewage treatment facilities mechanical equipment such as ceramic membrane filtration systems, ozone generation systems, sludge incinerators, and high speed CSO filtration systems as well as electrical equipment including power receiving and transforming equipment, instrumentation equipment, and monitor and control equipment.
Previously, METAWATER focused on domestic business and enhanced our presence both in water and wastewater treatment markets in Japan; however, we are now strengthening our efforts to expand business overseas for middle- and long-term growth. To this end, METAWATER is going to seek public-private partnerships in emerging countries in Southeast Asia, while in Europe and the US, which have large and stable markets, we intend to establish business alliances with European and US companies.
Of special note is the fact that, in Europe, METAWATER signed a strategic alliance on June 10, 2013 with PWN Technologies B. V. (hereinafter referred to as "PWNT"), known for its innovative solutions and a subsidiary of a Dutch water supplier, PWN Water Supply Company North-Holland. Through forming this alliance, we began to take steps toward creation of opportunities and expansion of business through supplying our ceramic membranes and providing engineering services. RWB has a proven record of providing engineering services to PWNT and of delivering a variety of water treatment systems across Europe, including the Netherlands, Germany, Belgium, Norway, and Sweden.
Based on the technology license and sales agreement for our ceramic membranes concluded in 2007, RWB delivered a ceramic membrane filtration system to a new filtration plant after the pilot tests through public-private partnerships in Norway, and also delivered ceramic membranes filtration systems to municipalities and industries in the Netherlands, thus contributing to reinforcing our business foothold in Europe. In addition, business is expected to expand in the field of new hybrid technology and products that will be created by combining various unique water treatment systems of RWB and our ceramic membranes.
Our capital and business alliance with RWB this time is our first capital participation in an overseas company. This is expected to dramatically increase the opportunity to supply our ceramic membranes to the Netherlands, as well as helping us to win new projects for water and wastewater treatment related equipment and systems across Europe, taking advantage of RWB's abilities in sales, marketing, technology, services, and maintenance through the partnership.
METAWATER acquired a little less than 200 million yen, or 24.7% of the stock of RWB on August 20, 2013 in the form of accepting new shares through a third-party allotment. At the present stage, we are not making the partner an equity method affiliate but an affiliate company to which we will dispatch one board member on a part-time basis, so that we can begin to create synergy. According to our plan, as METAWATER increases our capital contribution ratio to RWB, we will form a group including the company three to five years in the future, and make it the core base for our business in Europe.
2. Overview of RWB
|Company name||Rood Wit Blauw Holding B.V.|
|Headquarters location||Almelo, the Netherlands (eastern edge of the Netherlands, near the border with Germany)|
|Representative||Mr. Andre Reigersman|
|Capital||18,000 euros as of August 20, 2013|
|Sales||Approximately 15 million euros|
|Number of Employees||69 as of August 20, 2013|
|Line of business||Complete water and wastewater treatment engineering services, maintenence, etc.|