Image By: Dow Chemical Co. Jinming chairman Ma Zhenxin and Dow's Asia Pacific Commercial Vice President Mark Saurin.
Guangdong Jinming Machinery Co. Ltd. said it is poised to becoming the first Chinese machinery manufacturer to master polyvinylidene chloride (PVDC) processing technology, thanks to a licensing agreement with Dow Chemical Co.
Under the agreement, Dow will license its early encapsulation and die channel design technologies for processing PVDC. Jinming will have rights to manufacture and market products using the licensed technology as well as to sublicense it to third parties.
Midland, Mich.-based Dow has agreed on exclusivity of the license until March 1, 2017.
The agreement was signed on Aug. 5 with a five-year term. It is Dow's first licensing agreement for the technology in Asia.
Jinming will pay 14 percent of the fair market value of all products using Dow’s early encapsulation technology and 5 percent of the fair market value of licensed products that do not use the technology.
The licensing deal signals longer-term cooperation between the two companies, Jinming said in an Aug. 6 statement.
Jinming told investors in an Aug. 7 online session that it expects to commercialize film machinery using the PVDC early encapsulation technology in the first half of 2015. The company said the new products will bring positive impact on its financials in 2015 and beyond.