ZK International Group Co., Ltd. (ZKIN), a designer, engineer, manufacturer, and supplier of patented high-performance stainless steel and carbon steel pipe products primarily used for water and gas supplies, announced that it entered into an Exclusive Supplying and Distribution Framework Agreement with Shandong Huaye Group (Huaye), a structural and fencing piping products manufacturer and suppliers in China, for Huaye’s ongoing production line and machine upgrades (the Upgrades).
The Upgrades, with Huaye’s plan to allocate a total budget of RMB 350M (approximately USD 49.7M), is now underway at Huaye’s existing 120,000 square meters facility in Mengyin County, Shandong Province. The Company licensed its patented technologies and assigned experienced engineers to support the Upgrades. Phase I of the Upgrades is expected to be completed by September, 2020 and will enable Huaye to manufacture premium gas and water pipe products that the Company specializes in.
The major purpose for the partnership is to exchange resources and create synergies between Huaye and the Company. Upon completion of the Upgrades, Huaye will exclusively manufacture water and gas pipe products for the Company that will significantly shorten the Company’s delivery cycle.
