LaserBond Ltd (ASX:LBL) has signed a technology licensing contract with a large minerals processing equipment manufacturing company located in the Henan Province in central China.
LaserBond manufactures, repairs and reclaims wearing parts and assemblies using surface engineering technologies.
The contract initially involves the design, building, installation and commissioning of a cladding cell for $1.45 million.
The Chinese company manufactures crushing equipment and has a division for reclamation of mining and minerals processing components.
China represents a major market for the application of LaserBond’s technology.
In coal mining, a space that LaserBond knows well, China is the largest producer in the world, producing 3.9 billion tonnes in 2014.
The Chinese mining equipment sector generates US$15 billion in revenue per annum.
This equipment suffers wear and corrosion issues similar to mining equipment in Australia.
LaserBond’s technology is being widely used in the Australian mining equipment market.
The company generated a revenue of $10.5 million for the year ended 30 June 2016, an increase of 10% from $9.5 million in FY 2015.
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