Enersize enters into new agreement with Hankook
Translation in English of previously released news: Enersize Oyj ("Enersize") today announces that the company has entered into a new agreement with Hankook Tire Jianxing Co., Ltd. ("Hankook"). The agreement is the first agreement signed regarding LEAQS in China and the first that has been signed directly with a customer in China without a partner as intermediary. The agreement concerns a pilot project of Enersize's leakage service using LEAQS in a limited part of Hankook's factory in order to show what level of energy savings can be achieved. The objective of the parties is to follow up with a full-scale project, including the entire factory, and in the long-term also to other Hankook factories in the event of a positive result. The order value initially amounts to approximately 70 000 SEK, which includes demonstration of leak detection with LEAQS on a defined production area. Hankook is responsible for performing the leak repairs based on LEAQS results.
During the summer of 2018, Enersize and Hankook, through Venergy, entered into an installation agreement of Enersize Q+ system for measuring the factory's compressed air system. Enersize and Hankook have now negotiated a new direct agreement with the intention of starting to use LEAQS for energy savings. The agreement replaces the previous installation agreement and is signed between Hankook and Enersize’s wholly-owned Chinese subsidiary.
The agreement includes a pilot project for a limited production area corresponding to approximately 10% of the factory's total area, where Enersize will perform leakage detection using LEAQS and where Hankook will be responsible for repairing the leakage. The objective of the new agreement is to demonstrate Enersize's expanded offering of both leakage and energy savings via the software LEAQS and Enersize Q+. The parties intend to continue the collaboration with a new project covering the entire factory and, in the long run, additional Hankook factories. Hankook's maintenance staff will then receive training in the use of LEAQS so that they can independently carry out both leak detection and repair.
The estimated level of savings for the customer for the pilot project is estimated at 20-30% of the used flow in the examined part of the factory. The pilot project is expected to be carried out by Enersize at the end of April 2019, after which Hankook's goal is to be ready with the repairs in May 2019. Subsequently, evaluation and final negotiations follow on full-scale projects.
Hankook is the world's seventh largest vehicle tire manufacturer and is originally from South Korea. Hankook is today one of China's largest tire manufacturers. The company has factories worldwide and also in Jiangsun, Jianxing and Chongqing in China. The factory in Jianxing manufactures tens of millions of tires annually.
"It feels very exciting to roll out a new agreement with Hankook and it is a breakthrough for Enersize that an agreement in China is signed directly with the end customer. It is also a big breakthrough that it is built on a step-by-step model where Enersize receives payment in each step, even the first. In the project we will use both LEAQS and Enersize Q+ to show how the softwares together can achieve greater energy savings. This agreement is yet more proof that the license model works and has great potential and scalability also in China”, says Anders Sjögren, CEO of Enersize.
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For more information about Enersize, please contact:
Anders Sjögren, CEO
Brief information about Enersize
With its proprietary patent-pending automated software for leakage management, data collection and analysis, Enersize can provide 10-50% energy savings in industrial compressed air systems. Through the recently acquired LEAQS system, the company has access to more than 9000 leakage management projects, and the associated more than 4000 customers worldwide. The combination of the company’s software services can increase the customer’s savings in running projects, while generating direct license and project revenue. 90% of the manufacturing industry uses compressed air, which constitutes about 5% of the world's total electricity consumption. Among Enersize's existing customers are one of the world's largest manufacturers of flat screens and well-known car manufacturers and steel mills. The company is headquartered in Helsinki, have a sales office in Gothenburg and a development office in Lund. The company is listed on Nasdaq Stockholm First North under the ticker: ENERS. www.enersize.com