Dubai group in Vergence partnership deal
Oregon (US), May 5, 2012
CUI Global, a technology firm focused on development of innovative electro-mechanical products, has inked a deal with Dubai-based Belleau Wood Group (BWG) for distribution of its natural gas metering device in GCC region.
As per the agreement, BWG will get exclusive distribution rights for sale of its patented Vergence natural gas metering devices in the UAE, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman and Yemen.
Under this deal, BWG will have to purchase a 'minimum initial order' of 100 units, valued at $2.5 million (based on MSRP), following the successful completion of a thirty (30) day test of one device at a site to be selected by BWG and CUI Global.
In order to pass the test, the device must meet the +/-0.5 per cent accuracy standard set forth in the American Gas Association (AGA) Section 5 Standard, a standard the device has met or exceeded in all previous testing, said a top official.
CUI Global's president & CEO, William Clough said, 'This agreement is the first such agreement that obligates the distributor to issue purchase orders and purchase a minimum number of our GasPT2 units in order to test the devices. Previously, we had to provide the devices without such an obligation because of the new, unproven nature of the technology.'
'Now, as a result of our successful testing in Italy at Snam Rete; in Poland with GazSystems; with Ofgem in the United Kingdom; and with Gasunie in The Netherlands, we are able to insist on confirmed purchase orders before we provide a test device,' he noted.
Commenting on the partnership, Patrick F. Campos, the chief executive officer of BWG, said, 'We are very enthusiastic about this new relationship with CUI Global. We are convinced that this is the first of many agreements we will establish to market and sell this exciting new technology around the world.'
'In fact, we are in the process of establishing a subsidiary company to be known as BWG-Blue Flame that will focus on distribution of the Vergence Technology in partnership with CUI Global,' he remarked.
According to Campos, the natural gas market in the Gulf region is extensive and the efficiencies and real-time monitoring offered by the Vergence GasPT2 device are unparalleled.
'We are confident that there will be great interest and significant sales of the device in the Gulf once it has been tested, which is why we are wiling to make this commitment to CUI Global and its team,' he added.-TradeArabia News Service