Opcon AB (publ) signed a Letter of Intent with its strategic partner Fujian Snowman Co. Ltd. on the formation of a Joint Venture for the marketing, manufacturing and sales of Opcon's Waste Heat Recovery technology, the Opcon Powerbox in China and parts of Southeast Asia. In order to develop the Chinese market and an industrialized manufacturing base for the Opcon Powerbox the parties' intention is to form a joint venture that will be owned 51% by Snowman and 49% by Opcon.

Opcon will grant a license for manufacturing, marketing and sales of its proprietary Opcon Powerbox ORC and WST (West Steam Turbine) technology to the JV who will aim to develop Snowman's existing manufacturing base for future low-cost, quality manufacturing of Opcon Powerbox ORC and WST in China. Furthermore, the JV will be granted exclusive manufacturing and sales rights of the Opcon Powerbox in China and a mix of exclusive and non-exclusive rights for some other parts of Southeast Asia. The value of the Opcon Powerbox manufacturing, marketing and sales rights to be granted to the JV will be used by Opcon as contribution in kind for equity.

What is not used as contribution in kind should be paid as Royalty by the JV to Opcon. The Joint Venture will be responsible for setting up solutions for producing electricity from the Opcon Powerbox out of surplus and waste heat in China which is considered the world's market. The parties aim to finalize the Joint Venture contract during the summer of 2014.

In order to reduce time to market for the joint venture Snowman has also placed an order for one Opcon Powerbox ORC and one Opcon Powerbox WST manufactured in Sweden to be delivered for operation in China.