Lloyds Engineering Works has announced a strategic partnership with US-based The Material Works through a purchase and licensing agreement for eco-friendly EPS Gen 4 steel technology. This collaboration marks a significant development in the company's technological advancement and sustainability initiatives.

Strategic Technology Partnership

The agreement with The Material Works provides Lloyds Engineering Works access to advanced EPS Gen 4 steel technology, which focuses on environmentally sustainable steel production methods. This partnership represents the company's commitment to adopting cutting-edge technologies that align with global environmental standards.

Technology Acquisition Details

Environmental Impact and Innovation

The EPS Gen 4 steel technology represents a significant advancement in sustainable steel manufacturing. By entering into this agreement, Lloyds Engineering Works demonstrates its strategic focus on incorporating environmentally responsible technologies into its operations. The eco-friendly nature of this technology aligns with growing industry demands for sustainable manufacturing processes.

Market Positioning

This technological partnership positions Lloyds Engineering Works to enhance its competitive advantage in the steel industry through access to advanced, environmentally conscious production methods. The collaboration with The Material Works provides the company with proven American technology that could potentially improve both operational efficiency and environmental compliance.

Lloyds Engineering Works has secured a significant technology licensing agreement with a US-based company, marking a strategic expansion into advanced steel surface cleaning solutions. The company disclosed the partnership through a regulatory filing on January 10, highlighting its commitment to sustainable manufacturing technologies.

Agreement Structure and Scope

The purchase agreement has been signed with The Material Works Limited (TMW), a Delaware-incorporated entity operating from Red Bud, Illinois. Under this licensing arrangement, Lloyds Engineering Works gains comprehensive rights to TMW's patented Eco Pickled Surface (EPS) Generation 4 technology.

Operational Territory and Limitations

The agreement provides Lloyds Engineering Works with extensive global manufacturing and sales rights, though certain geographical restrictions apply. The company is authorized to operate worldwide, excluding China, Macao, Hong Kong, Taiwan, and areas within a 350-mile radius of Red Bud, Illinois.

Technology and Support Services

TMW will provide comprehensive technical support services as part of the licensing arrangement. These services encompass design improvements, technical training, sales training, and access to marketing materials. The collaboration ensures Lloyds Engineering Works receives ongoing support for successful technology implementation and market penetration.

Financial Structure

The agreement incorporates a structured payment mechanism involving annual cash payments to TMW, supplemented by agreed earn-out payments over a specified period. However, the company has not disclosed the financial value of the agreement in its regulatory filing.

Environmental Technology Benefits

The EPS Generation 4 technology represents a significant advancement in sustainable steel processing. The system enables steel surface cleaning without acid usage, completely eliminating traditional acid-based pickling processes. Key environmental advantages include:

• Use of recyclable materials throughout the process
• Zero effluent discharge capability
• Elimination of hazardous acid-based chemicals

Lloyds Engineering Works confirmed that this transaction does not constitute a related party transaction, with neither promoters nor promoter group entities holding any interest in The Material Works Limited.