If that statement above refers to
@ywtoh's "Intel Inside" reference comparing MABR spirals to Intel PC processors, I don't think this is quite accurate in this case.
The 2 latest volume agreements in Hunan and Liaoning allow Fluence to expand out their manufacturing footprint with 2 final assembly plants in those provinces, supported with investment and tax incentives from the local governments to encourage employment of local workers and assembly of a product that will be used within the local region. Fluence will hire and control the staff at these 2 final assembly plants. 2 partners in Hunan Kaitian and Liaoning Huahong have got commitments from the local government bureaus that they will win orders for the region, for these locally assembled Aspiral/SUBRE plants.
There is still risk in if Hunan Kaitian or Liaoning Huahong do not meet their minimum commitments, as this will detract from the efficiency of the new manufacturing/assembly/distribution model.
This model will not necessarily apply to all future partners. Some partners and local governments will not apply for minimum volumes, so will be supplied from the most efficient part of the distribution chain. Other partners will require this sort of commitment from Fluence into opening a assembly plant and hiring local staff. For Fluence these agreements gives them some long term financial assurity and ability to forecast future demand, while being able to distribute parts around China more efficiently.
This also shows a growing acceptance and trust in MABR. iTEST was not just a fluke. Hunan Kaitian was not just luck. Liaoning Huahong did not just agree to this blindly. Each partner and region has had thorough reviews of the technology, and it has been ticked off from both a technological and financial standpoint by many design group experts, wastewater professionals, environmental analysts and government ministries.
Our SUBRE competitors in Oxymem and GE Zeelung are backed by big names in Dow Chemical/DuPont + Saudi Aramco (Oxymem) & Suez (GE Zeelung).
MABR has passed testing and compliance at Stanford in California, there is further testing going on in Spain and Israel.
Aquatec Maxcon have given it their tick of approval in Australia. We are seeing acceptance in the Philippines and Jamaica.
This is just the start. In this slow moving industry it takes awhile to be trusted and accepted, but them it can become the new standard.
There is a snowball effect in this industry. The more references you have, the more projects you are then likely to win. The risk factor is large in water, and customers do not want to be guinea pigs for new technology. Once it has been proven and tested on other people successfully, then new customers are willing to take the plunge.
Excited to see what the future holds, momentum is growing.
Zhejiang Tiandi/Hangzhou, we are waiting to see what sort of volume you can do.
