FORT WAYNE, IN and NINGBO, Zhejiang, July 27, 2012 /CNW/ - WaterFurnace Renewable Energy, Inc. (TSX: WFI) and Ningbo Shenglong Group Company, Ltd. today announced the formation of WaterFurnace Shenglong HVACR Climate Solutions Co., Ltd. (WFSL) under a joint venture agreement. The new company will provide heating, ventilation, air conditioning and refrigeration (HVACR) products to the Chinese domestic market under the "WFI" brand name.
WFSL's primary focus will be geothermal heat pump technologies although traditional HVACR designs are being explored to complement its geothermal offerings. These new products are expected to provide WFSL entry into other Asian territories and eventually markets worldwide. Shenglong's expertise in manufacturing and distribution for the Asian market combined with WaterFurnace's expertise in energy-efficient technologies and engineering will position WFSL to take advantage of the rapidly increasing HVAC opportunities in China.
Shenglong Group Chairman Luo Yulong explained, "This joint venture is a marriage of strengths. Shenglong has an extensive manufacturing facility, a fully trained workforce and an existing sales channel infrastructure. WaterFurnace brings a culture of innovation and a vast amount of experience with energy efficient technologies. This partnership will benefit both companies in a significant way."
Tom Huntington, WaterFurnace Renewable Energy, Inc.'s President and CEO stated, "This is an historic day for WaterFurnace. Our increased global footprint and ability to bring focus to the Chinese market bodes well for the Company. Not only does this venture provide new sourcing and distribution opportunities, it also brings the enormous growth potential of the Chinese market to WaterFurnace and its shareholders. We're very excited to have the staff of Shenglong as a partner."
The investment will be made through WaterFurnace International Hong Kong, Ltd, a subsidiary of WaterFurnace Renewable Energy, Inc. The Hong Kong entity will also be responsible for all of WaterFurnace's worldwide sourcing and distribution efforts.
The total investment of the parties is $8,000,000 U.S. Shenglong will own 51% of the venture with WaterFurnace owning 49%. Other details of the agreement were not disclosed. It is expected that the WFSL will begin full operations before December 31, 2012.
To learn more about WaterFurnace, visit the website at www.waterfurnace.com.
WaterFurnace is the leading manufacturer of geothermal and water source heat pumps. Products from WaterFurnace include energy-efficient and environmentally friendly geothermal comfort systems, indoor air quality products and pool heaters. WaterFurnace (TSX:WFI) was founded in 1983, and the company is headquartered in Fort Wayne, Indiana. For the latest news and updates from WaterFurnace, connect with us on your favorite social media sites - follow us on Twitter @WaterFurnace, like us on Facebook or view the WaterFurnace YouTube Channel.
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SOURCE: WaterFurnace Renewable Energy, Inc.