Ann: Emefcy Group & RWL Water Announce Strategic Allicance, page-43

What a great announcement !

From my understanding EMC will be rolling modules off its Chinese factory line for a sale price of $10,000 each later this year (at a 40% margin). The average installation will entail say 10 modules which is $100k with the total cost of the install being $200k. The $100k difference is the engineering and associated costs of the install to which EMC had no claim on.

Now this piece of the puzzle has fallen into place with a strategic alliance with RWL who have the capability and expertise to grab a big share of the second $100k.

The Chinese undertaking and expectations of EMC are enormous from the 4th quarter onwards for many years.

RWL also has significant operations in Latin America, Europe, Middle East and most importantly the United States. Its my impression (which I may be incorrect) that the biggest problem with the USA is distribution, installation capability and red tape. The RWL strategic alliance would seem to significantly overcome these perceived headwinds. We could now see an acceleration of the RAAS model which to the market may seem to have lost traction. I reckon its game on again.

All of a sudden we have sales offices all over the world. RWL even has operations in Australia.

This could well be the big bang effect for EMC rapid expansion all around the world.

I think we can throw out that last Taylor Collison research report. The numbers have suddenly gone through the roof imo.

Also, RWL are a large successful private company. Lets not discount any corporate activity. RWL have made many acquisitions in this space.

Cheers