$850bn to clean up china's filthy water supply, page-4

Jefferies2,

You're right in saying Phoslock is manufactured in China. On page 6 of the latest Annual Report the company states the manufacturing joint venture in China is in its 10th year, but that it won't be extended beyond December this year.

PWS stated that they had put into place an alternative manufacturing agreement with a party they have dealt with over a number of years in central China which will be in production by November, so it should be up and running soon if it's not already.

Looking at the sales by region for FY13 Asia didn't even feature being part of the ROW figures making up a paltry 2% of overall sales by region.

Furthermore of the 43 projects PWS is currently working on, only 3 are located in Asia.

China and Asia in general remain mostly untapped markets for PHK thus far.

I see that you have sold out of PHK. Hopefully you will have reason to buy back in sooner rather than later.

PHK is a long-term hold for me as I foresee significant growth and profitability for the company going forward.

As PWS stated itself, the demand for Phoslock has never been greater. Now is the time to start capitalising on that demand and secure some major projects.

I am looking forward to see what transpires over the next 12 months and beyond.