Dec 27 2012
Synthesis Energy Systems, Inc. ("SES") today announced that it has entered into a revised services agreement with Crystal Vision Energy Limited ("CVE") focused on growth of SES China, the Company's China business platform, via capital raising, M&A, and management services.
Under terms of the agreement, CVE will provide important executive leadership and management services focused on delivering key objectives for SES China over the next 12 months. These include the restructuring of the Zaozhuang Joint Venture plant, or ZZ, to achieve profitable operations, the successful ramp up of methanol sales from the Yima Joint Venture plant with the goal of full commercial production during the first half of calendar 2013, and delivering SES China platform level funding and financing required for acquisition initiatives currently under development by SES China intended to provide near term earnings. In addition, CVE has assigned an acting full time Managing Director for SES China at its China headquarters in Shanghai with significant experience in running infrastructure businesses in China and in successfully executing and integrating mergers and acquisitions.
To effectively lead delivery of results from the key objectives and to develop new strategic business opportunities in China, SES has established a senior level executive steering committee for its SES China business led by Colin Tam of CVE who reports to SES' CEO. As part of the services provided by CVE, Stephen Chow , a representative of CVE, will act as the Managing Director of SES China. Mr. Chow has a long and distinguished career in China with executive experience from Mobil Oil and later with BP where he led BP's LPG business in China. Mr. Chow also served as President of Titan Petrochemicals Group, a Hong Kong listed petrochemical company providing oil supply, trading, storage and downstream distribution services in the Asia-Pacific region. More recently, Mr. Chow was the CEO of Huatong Energy Group, a division of AEI China Gas, where together with Colin Tam he led the acquisition and integration of three Chinese downstream gas conglomerates in Shanghai, Beijing and Hubei to form Huatong Energy.
"I am pleased to continue our collaboration with Colin Tam and his CVE team. We are all committed to achieving the key objectives for ZZ, Yima and the China acquisition activities currently underway, with a goal of delivering important operating cash flows from our SES China business across 2013, as intended," stated Robert Rigdon , president and CEO. "With assistance from CVE, over the past six months SES China has strengthened its focus on business operations and SES successfully completed the $15.5 million strategic equity investment from Hongye (Inner Mongolia) and Shanghai Zhongmo (Shanghai). Our strategic direction for SES China is to create a China centric operation that will leverage our technology to participate in China's ever growing coal resources, fuels, gas, fertilizers, chemicals and renewable resources businesses with a long term goal of listing our SES China business in Hong Kong or other regional exchanges."
Colin Tam , Executive Chairman of Crystal Vision Energy Ltd., stated, "I am very pleased to see CVE and SES continue to work together to grow the SES China business. With our Yima project very close to producing its first methanol and with the planned ramp up to full capacity from this large project, I believe the value of SES' technology applying to the low quality coal in China is now ready to be fully realized."
Mr. Tam added, "Our initial work with potential partners and investors in SES China is very encouraging and we believe 2013 will be an important year of progress for SES in China. Together we intend to fund and complete near term strategic M&A transactions for SES China with a goal to deliver near term financial results."
Source: http://www.synthesisenergy.com/