Enpar ENP looks to create Key partnership
2004-09-07 11:45 ET - News Release
Dr. Gene Shelp reports
"ENPAR" TO ESTABLISH JOINT VENTURE COMPANY IN THE REPUBLIC OF SOUTH AFRICA WITH PARTNER "KEY STRUCTURE HOLDINGS INC." - CSIR PURCHASES FIELD UNIT FOR ON-SITE TESTING
Enpar Technologies Inc. has signed a memorandum of understanding with Key Structure Holdings Pty. Ltd. to establish a joint venture company/partnership in the Republic of South Africa. The new enterprise will be owned 51 per cent by Enpar and 49 per cent by Key.
Key Structure Holdings Ltd. is a private South African company owned and managed by Leo Pistorius and Jacobus du Plessis. The Pistorius family holds 100-per-cent interest in 10 companies through H. Pistorius & Co. Ltd. founded in 1944. Mr. Pistorius is managing director of the company, which also holds 25 per cent to 60 per cent in 40 other companies.
H. Pistorius & Co. is involved in the processing, mining, marketing and distribution of agricultural and industrial limestone, and is currently the largest supplier of agricultural lime in South Africa.
Mr. du Plessis is a developer of industrial, commercial and residential real estate. His portfolio of business activities includes ownership of a precision engineering company, a steel smelter that manufactures steel balls for ball mills, and agricultural businesses that produce olives, grapes and fine wines.
Key has established an impressive track record in the commercialization of new technologies. One of the most notable successes was the recent commercialization of acid water neutralization technology developed by Dr. Jannie Maree of the Council for Scientific & Industrial Research (CSIR) of the Republic of South Africa. Developed in collaboration with Key's senior researcher, Dr. Wynand Louw, this technology is protected by a worldwide patent and is currently being used at industrial or mining sites in several countries in southern Africa and in Australia.
The CSIR, a Crown corporation employing approximately 2,500 scientists, engineers and support staff, is the largest research enterprise of its kind in Africa, and is currently engaged in conducting approximately 10 per cent of the research and development on the continent.
Research conducted in collaboration with CSIR at its facility in Pretoria using Enpar's DesEl System has been the catalyst for Enpar's decision to enter into this joint venture. The research clearly demonstrated the benefits of Enpar's DesEl System over conventional treatment approaches, particularly the extremely high recovery of clean water from mine waste water. In a letter dated July 8, 2004, Dr. Jannie Maree, divisional fellow and business area manager, stated, "In summary, CSIR envisions enormous opportunities for the DesEl System within the southern Africa market and is pleased to continue to participate in the commercialization of the technology for the benefit of all stakeholders."
CSIR will continue to function as general technical adviser to the joint venture partnership on commercial installations and will spearhead technology development of Enpar's versatile array of state-of-the-art, electrochemical water treatment technologies.
In support of this role, CSIR has purchased a DesEl field unit at a price of $70,000. Scheduled for shipping in November, 2004, the system will be commissioned immediately at a mining site owned and operated by a client of CSIR.
Dr. Gene Shelp, president and chief executive officer of Enpar, stated: "We are very excited about the joint-venture and the numerous business opportunities that are present in southern Africa and Australia. The high-level research conducted by CSIR enabled Enpar to attract astute business partners with proven records of successful marketing and sales. During our recent visit to South Africa, I was impressed by the high level of business acumen displayed by our partners and the professionalism of clients currently considering the DesEl System.
"This joint venture partnership will also provide Enpar with access to markets for our state-of-the-art AmmEl and NitrEl technologies. Designed to convert the contaminants ammonia and nitrate, respectively, to environmentally friendly nitrogen gas, these complementary systems have applications for municipal waste water treatment plants, chemical plants, fertilizer plants and in areas of intense agricultural activity."