As previously announced in Swedish - Al Homsi Group BVI signs framework agreement with Absolicon on the acquisition of a production line for solar collector T160 in Cyprus

Information in English related to the regulatory Swedish Press release of 2020-01-13

Al Homsi Group BVI (AHG BVI) | Enterprise Design & Engineering Contracting Services Group has signed a framework agreement with Swedish Absolicon to acquire a production line for the solar collector T160 in Cyprus. The total sales value covered by the agreement is estimated at € 4-5 million, additional € 4 million investment for the raw material, a monthly license fee of 4% and sales of components.

Absolicon's production lines for concentrating solar collectors can change the energy supply for individual industries and entire cities. The Eastern Mediterranean is an unstable region but with good solar irradiation and high growth potential. The engineering company AHG BVI and Absolicon have now signed a framework agreement on the acquisition of a production line for establishment in Cyprus to supply the region with high end solar thermal panels.

AHG BVI has presented a plan where the company primarily sells concentrating solar collectors to industries, cities and commercial buildings using its own resources. The company already works with several large international companies in the region and has a regional contact network aimed at large hospitality and telecom companies.

In many ways, AHG BVI differs from Absolicon partners in other countries. The company is run by businesspeople rather than energy experts and has impressed Absolicon's sales team with its clear vision of how the business around the production line will develop.

The production line is expected to be delivered from Sweden in 2021. Now more detailed contract writing is taking place. Payment is made step by step in the same way as in the previous sale of the production line to Sichuan Province.

The region

The countries on the east coast of the Mediterranean are sometimes referred to by the older name the Levant Area and the historical and economic links with Cyprus are strong. Cyprus is a good starting point for "business to business" in the region and in many ways a safe place for establishing sales and manufacturing.

For renewable energy, the eastern Mediterranean coast has challenging markets but with high potential. AHG BVI has extensive experience of "business to business" sales in the region and the plan is to use the internal sales and project planning resources to target key customers. The company plans to first expand vertically, from sales and production to installation with the end customer, and maintain its own expertise to project manage, build and integrate solar heating with customers. The first step is to introduce pilot plants to win customer confidence. Once larger installations have been established with customers, more distribution channels can be established.

The countries that AHG BVI will focus on are:

• Cyprus, with 1 million inhabitants, is a stable country to work from. In Cyprus, the industry burns 100,000 tonnes of oil each year to run its processes. Cyprus is a rich country with a large financial sector.

• Jordan with 9 million inhabitants has a stable economy, but investment willingness is limited because the region is unstable. The industry uses 300,000 tonnes of oil per year and there is a strong desire to reduce oil imports and use solar heat instead.

• Lebanon with 6 million inhabitants has also been affected by the unrest in the region with many refugees and weakened economy. The industry uses about 100,000 tonnes of oil per year.

• Iraq is a large country with 38 million inhabitants, rich in resources. In parts of the country it has been stable for a long time and there are profitable companies. In 2015, Iraq's industry used 2 million tonnes of oil.

• Syria is a diamond business rose in the region for the future of reconstruction and urban buildings for the following several years after the end of war. At present, the focus is exclusively to support the activities of the projects of international humanitarian organizations for relief projects and to assist the local population complex supervised by the international community.

AHG BVI estimates that within two years, Absolicon's brand and solar energy offer will be well known throughout the region. By first implementing projects using their network of real estate companies, industrial companies and engineering companies that are building new factories in the region, and later engaging a wider contact network horizontally in the industry, AHG BVI believes that they can create both good sales and provide good service to the customers.

AHG BVI has 20 years of experience in sales in the region, both for hotels and commercial real estate as well as in telecom businesses. In each target country, there is already an organization for project sales and project management.

Content of the framework agreement

The framework agreement is not binding but prescribes the general principles for the separate agreements to be drawn up. Absolicon's sales revenues can be grouped into three groups: acquisition of the production line, licensing revenue and revenue from material sales.

The production line is the same model as the one Absolicon has in Sweden and the one that the company already delivered to Sichuan Province. The line with two six-axis robots has the capacity to produce 50 MW solar collectors (100,000 m2) per year. Along with the hardware, Absolicon provides consulting support for marketing work and technical support, development and technical training.

The total value of hardware and activities covered by the agreement is estimated at € 4-5 million and for the additional € 4 million from the raw material sales.

If Al Homsi Group BVI fails to fulfil its commitments at every stage, they lose the right to complete the acquisition but can recoup some of the purchase price, however not for Absolicon's accrued costs.

Delivery time

The first pilot installations of the T160 from Al Homsi are expected during the second half of 2020. Solar collectors for these installations will be delivered from Sweden. The production line is expected to be sent from Sweden during the second half of 2021.

For more information:

Joakim Byström CEO of Absolicon Solar Collector AB

E-mail: joakim@absolicon.com
Phone: 0611-557000

Absolicon is a listed Swedish solar energy company, specializing in concentrated solar heating. The solar collector T160 operates up to 160 ° C and has the highest optical efficiency ever measured for a commercially available small parabolic trough.

After achieving ground breaking performance and delivering a first production line to the Chinese province of Sichuan, Absolicon has built a robotized production line in Sweden for demonstration for interested customers and for own production of solar collectors.

AHG BVI. Enterprise Design & Engineering Contracting Services Group: are a business group leader in the Levant Area, Creating a wide commitment to total quality and professional Engineering Services & High Performance Buildings Solutions. We focus on Eco-Construction Techniques for Building Project types (Sustainable Building Technical Turnkey Services) & Sustainable Renewable Energy and Energy Efficiency (REEE) Development Planning and Design. We also focus on Critical Infrastructure Security Protection & Telecom Smart Systems for Operator Towers and Buildings by using the right design method and integrated technical smart solutions.

AHG BVI are targeting to establish a Swiss Capital JV Consortium with asset capital of 1 Billion Swiss Francs listed in Swiss stock exchange to build and asset management many vertical green buildings and communities villages in the Levant Area that are environmentally responsible and energy resource-efficient throughout a building's life-cycle: from planning to design, construction, operation, maintenance, renovation, and demolition.

For more information:

Bashar Al HOMSI Founder / CEO of Al Homsi Group BVI

E-mail: bashar@alhomsigroup.com
Phone: 0944-339080