Smith-Midland Corporation (OTCQX: SMID) recently hosted a six-person delegation from one of China’s largest construction companies to discuss a licensing arrangement. Nantong Sijian Construction Group (“NSCG”) Chairman Geng Yuhua and his team visited Smith-Midland Corp. for two days in mid-April. Based in Jiangsu Province, NSCG has 70,000 employees working in construction, including precast concrete, Smith-Midland’s specialty.
Considered a “Top 100 Enterprise” in the Chinese construction industry, the company has completed more than 800 large-scale commercial, institutional and residential building projects since its founding in 1958.
The meetings focused on Smith-Midland’s precast product licensing subsidiary, Easi-Set Worldwide. The local company’s SlenderWall, a precast concrete and steel stud building panel developed by Smith-Midland CEO Rodney Smith and his R&D team, provides the exterior envelope of mid-size and large-scale structures. NSCG contacted Easi-Set President Art Miles to discuss a licensing agreement that would allow the company to manufacture SlenderWall across China, with Easi-Set supplying technical and logistics support.
With access to affordable housing a top priority for the Chinese government, demand remains high for multifamily, high-rise projects. “NSCG is a primary supplier to this market and is searching for products like SlenderWall that will allow it to speed up its production and installation schedules using factory manufacturing, pre-assembly and modular methods,” Rodney Smith said.
“Easi-Set Worldwide works with 71 licensees in 42 states and 10 countries to manufacture six different lines of precast concrete products, all developed by Smith-Midland Corp.,” he added.
While in the United States, NSCG will be visiting other companies that produce competing products to Smith-Midland Corp. hoping to find a cladding product that will work consistently with constructions methods. Accordingly, there can be no assurance that a licensing agreement with Smith-Midland Corp. will be established.
Smith-Midland develops, manufactures, licenses, rents, and sells a broad array of precast concrete products for use primarily in the construction, transportation and utilities industries.
This announcement contains forward-looking statements, which involve risks and uncertainties. The Company’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors which might cause such a difference include, but are not limited to, product demand, the impact of competitive products and pricing, capacity and supply constraints or difficulties, general business and economic conditions, the effect of the Company’s accounting policies and other risks detailed in the Company’s Annual Report on Form 10-K and other filings with the Securities and Exchange Commission.
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