China gives Spotlight-listed Josab Water Solutions AB the go-ahead for the company’s water purification solution to be used in the country. This opens up a market with great potential for the company. The test was performed at the China Irrigation and Drainage Development Center (Chinese Ministry of Water). The tests show that Josab’s technology can easily and environmentally friendly eliminate high levels of manganese and iron from underground freshwater.

Josab has long tried to get this test done to sell the company’s water purification products in China. The process has dragged on due to the Covid pandemic. When the tests could finally be carried out, it was done without the personal presence of Josab, which shows the simplicity of using the company’s solution.

“This result can have very positive effects for Josab. It will both simplify and speed up the decision-making processes for selling our solution in China,” said Wilfrid Balmer, board member and CTO of Josab, and continues:

“We were able to perform a difficult task, namely to purify water with between two and four times as high levels of manganese as it is normally in Chinese water. This was possible through Josab’s development and new technical method, without the use of chemicals.

The potential market for Josab in China is very large. The number of isolated places and villages that need this type of water treatment is an order of magnitude and million.

“It is a great potential to keep in mind that only 1% of this market is 10,000 units. For 10 years, this would correspond to three units per day, which would mean an annual turnover of approximately SEK 0.5 billion,” says Peter Fredell, Chairman of the Board of Josab and continues:

“We offer a limited number of products, which can mean significance for benefits with very low production costs.

Josab has already started a joint venture with Chinese partners and the company has established manufacturing contacts in several places in China, which can make the starting distance relatively short.

Sales of test orders are expected to start around the middle of next year and more normal sales may begin in the last quarter of 2022.

“To get a more full-scale production and sales will take until mid-2023. Of course, this type of assessment is subject to great security,” says Peter Fredell.

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