Lloyds Engineering Secures Global License for Acid-Free Steel Tech
Overview
Lloyds Engineering Works inked a landmark global licensing agreement with US firm The Material Works (TMW) to produce and sell its patented Eco Pickled Surface (EPS) Generation 4 technology. This acid-free steel cleaning method offers zero effluent discharge, allowing Lloyds Engineering worldwide sales rights outside China and select regions. The financial terms were not disclosed.
Stocks Mentioned
Lloyds Engineering Works announced on January 10 a significant global purchase agreement with US-based The Material Works Limited (TMW). This strategic arrangement grants Lloyds Engineering the rights to design, manufacture, and sell TMW's patented Eco Pickled Surface (EPS) Generation 4 cells. The deal was formally communicated to stock exchanges as per SEBI regulations.
Environmental Breakthrough in Steel Cleaning
The core of the agreement revolves around TMW's innovative EPS Gen 4 technology, which eliminates the need for traditional acid pickling processes in steel surface cleaning. This environmentally friendly method utilizes recyclable materials and, crucially, results in zero effluent discharge. This aligns with growing global demand for sustainable industrial practices.
Global Reach with Key Exclusions
Under the licensing terms, TMW will provide Lloyds Engineering with its EPS Gen 4 technology, including design improvements, technical and sales training, and marketing support. Lloyds Engineering gains the right to operate globally, with specific exclusions for China, Macao, Hong Kong, Taiwan, and a 350-mile radius around TMW's Red Bud, Illinois facility.
Financials and Ownership
Lloyds Engineering is committed to making annual cash payments and agreed-upon earn-out payments to TMW over a specified period. The company confirmed its entitlement to manufacture and sell an unlimited number of EPS cells throughout the agreement's term. Importantly, the transaction is not considered a related party deal, with no interest from Lloyds' promoters or their group entities in TMW. The specific financial value of the agreement was not disclosed.
