Corac in partnership
With its new partner, Corac Group plc intends to develop a range of high speed no oil compressors for various niche and specialist applications based on Corac's core technology in areas including water treatment, pneumatic conveying and boosting of conventional compressor arrangements. These applications would compete in the Global Oil Free Compressor Market, which in 2010 exceeded $2 billion and is estimated to grow at a rate in excess of 8% per annum through to 2016 (1).
It is anticipated that successful development and field trial programs could lead to agreements for our partner to manufacture, market and sell Corac's high speed compressors under licence. Corac would provide development support and design capability to establish a range of machines for the selected applications. The efficiency and low maintenance characteristics of Corac's technology are becoming more important factors in the compressed air industry in which our partner operates.
This partnership is another important strategic and commercial step forward for Corac and adds to the agreements recently announced with Baker Hughes and OMV Austria Exploration & Production GmbH, part of the OMV Group. It strengthens Corac's position to create a broad platform of applications using its core technology and expands activity through partnerships outside of the oil and gas sector.
Phil Cartmell, Executive Chairman and CEO commented,
"The opportunity to develop high speed turbo compressors with a world leader in the global compressed air market is in line with our strategy to broaden the application of our technology within the Clean Air and Efficient Air Power business streams. We believe this partnership provides significant expertise in manufacturing and selling compressor technology as well as worldwide scale that could accelerate the commercialisation of our high speed turbo compressors."
(1 Source: Frost and Sullivan Global Oil Free Air Compressor Market report, April 2010)