Yaad in Chinese sewage treatment joint venture talks

The projects with Dowell could generate at least NIS 190 million revenue over five years.

Yaad Industrial Representation Ltd. (TASE: YAAD) is in talks to become a 30% partner in a sewage treatment joint venture in China with Dowell Ltd., which will generate at least NIS 190 million revenue for the company.

Yaad will carry out the project through subsidiary Treatec 21 Ltd. which it merged with in 2010. Treatec develops sewage treatment technologies. Treatec will give the joint venture with Dowell five years exclusivity to use its technology.

Dowell will undertake to provide the joint venture sewage treatment projects in China, with aggregate revenue of at least NIS 190 million, during this period.

Yaad said that it does not know the profit margins for the venture, or if a deal will be reached.

Yaad chairman Yaron Yenni acquired 55.5% through Upswing Capital Ltd. of the financially troubled Yaad last year from its previous owners. Treatec is Yaad's sole activity.

Yaad's share price rose 4.8% today to NIS 0.48, giving a market cap of NIS 47 million.

Published by Globes [online], Israel business news - www.globes-online.com - on April 16, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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