Sono-Tek Announces Formation of Joint Venture with Flowtech, SRL
Sono-Tek Corporation announced that it has formed a joint venture with Flowtech SRL, an Italian manufacturer of pressure nozzles.
Under the terms of the new venture, PNR America, LLC, a Delaware limited liability company, was formed for the purpose of importing and selling the full range of pressure nozzles manufactured by PNR Italia, which is owned by Flowtech.
PNR Italia, the leading European manufacturer of pressure nozzles, offers a full range of products consisting of general purpose industrial nozzles, tank washing nozzles, evaporative cooling lances, and accessories. Typical applications include surface coating, washing, product mixing, heat transfer, humidification, chemical reactions, product cooling, and combustion.
According to James L. Kehoe, Chairman and CEO of Sono-Tek, "The formation of PNR America comes after more than a year of evaluating our ability to successfully penetrate the U.S. market, which we estimate to be several hundred million dollars. We believe we can compete effectively with regard to price, delivery, and performance."
Mr. Kehoe continued "This new joint venture company should prove to be a major step in transforming Sono-Tek from an ultrasonic company participating in niche markets to a full service provider of spray products for almost any application. The basic technology of pressure nozzles causes them to wear, which requires frequent replacement. We believe that this repeat business will generate an ongoing revenue stream, supplementing the Company's capital equipment businesses."
Initially, PNR America will import products manufactured in Italy and sell directly to customers from its office in Milton, N.Y. as well as from a recently established regional sales office in Atlanta, Georgia. As the demand for these products grows, we anticipate that we will begin to manufacture certain of these products in the U.S. to further enhance our competitiveness.
Sono-Tek owns 49% of the new joint venture company, while Flowtech SRL owns the remaining 51%. Mr. Kehoe will serve as the President of the new company, while Federico Tonini, the Chairman of Flowtech, will serve as its Chairman.
Sono-Tek Corporation is the leading developer and manufacturer of liquid spray products based on its proprietary ultrasonic nozzle technology. Founded in 1975, the Company's products have long been recognized for their performance, quality, and reliability. S&K Products International, Inc., a wholly owned subsidiary of the Company, is a leading developer and manufacturer of precision cleaning and drying products for the semiconductor, disk drive and other precision cleaning industries.