Energtek Inc., a leader in hi-tech natural gas solutions and Adsorbed Natural Gas (ANG) technology, announced today that a partly-owned subsidiary Energtek Herz d.o.o. Mostar is being incorporated in Bosnia and Herzegovina, jointly with FEAL d.o.o. Siroki Brijeg.
FEAL is a developer of aluminum systems and advanced aluminum processing, selling its products to first rate companies such as Siemens and Bombardier. Companies pertaining to the same group of FEAL are involved in transportation and distribution of industrial products throughout Europe, and are similarly involved in fuel supply.
FEAL has a long-standing relationship with Aluminij d.d. Mostar, which has signed with Energtek the recently reported 10-year energy supply contract.
Additionally, as previously reported, a gas supply agreement has been signed with FEAL as a client, for the supply of approximately 1,800,000 cubic meters per year, generating about $1,500,000 of annual revenues.
Energtek will hold a 55 per cent majority share of the subsidiary through Energtek AL LLC, incorporated in the State of Nevada to carry out business activities including the supply of ongoing energy in the Mostar area. FEAL will hold a 45 per cent share.
"FEAL's deep knowledge of the local market and their logistic infrastructure are invaluable resources and we look forward to carrying out our supply agreements through our jointly-formed subsidiary," said Lev Zaidenberg, CEO of Energtek. "We expect to have these supply projects working as soon as feasible and to continue expanding our activities in the area," Zaidenberg added.
Energtek develops and applies innovative low-pressure mobile transportation solutions for industrial consumers and fleets of small vehicles. The company is also involved with oil and gas exploration in Israel. Energtek operates subsidiaries in North America, Europe, Asia and the Middle East.