Oct 1 2014
Heatwurx®, Inc., a premier developer of patented eco-friendly asphalt restoration and permanent repair technology, has entered into a non-binding letter of intent to develop a final agreement to distribute its proprietary and branded equipment in China and would designate Beijing Enhanced Solutions (BES) as the exclusive provider of patented and proprietary Heatwurx equipment to permanently and cost-effectively repair distressed asphalt surfaces in China.
The distribution agreement, which will be subject to Heatwurx board approval and must be executed no later than October 21, 2014, would be Heatwurx’s first direct entry into the international marketplace. As part of an initial market test, BES will immediately purchase for distribution two complete equipment packages (a patented processor plus a branded heater unit and consumables). The final agreement is expected to include terms that BES would sell a minimum of 10 equipment packages – each of which comprises the HWX-30 Heater and patented HWX AP40 processor, plus proprietary blend polymers and rejuvenation strips – by the end of 2015. BES would then be committed to drive a 20 percent growth in sales in each of the following years of the Agreement. The overall agreement could introduce over 70 equipment packages into the China market – and assuming all are sold, represents a potential sales value of over $1.5 million to the company.
Heatwurx, along with its service provider Dr. Pave, LLC, has repeatedly proven the quality of its asphalt repair and restoration technology to customers in the United States. In 2014, it completed hundreds of asphalt repairs on commercial properties, private roads and public roadways for municipalities and utilities in California. As a result, the company has also begun franchising the Dr. Pave brand and process in the United States via its franchising division Dr. Pave Worldwide (www.dr-paveworldwide.com).
“The last eight months have reaffirmed the quality of our equipment and processes, as well as their value to governments and property owners. We fully expect international customers to be equally impressed,” said Heatwurx CEO Dave Dworsky. “We are the world’s only provider of this technology. Our work with BES allows it to quickly ramp-up and engage the China marketplace.”
Of China’s 2.7 million miles of roads – compared to 2.6 million miles in the U.S. – the World Bank estimates that 81 percent are paved with asphalt or another paving surface. BES’s Zhang Chengshan points out that China’s recent economic growth is putting extra stress on its asphalt roadways.
“China’s highway system comprises a massive marketplace for Heatwurx’s amazing technology,” Chengshan said. “Our growing economy has increased the wear and tear on our roadways and driven a need for cost-efficient and innovative technologies for repairing those roads. We are very excited to help Heatwurx explore this huge market and build its customer bases across the country.”
The repair and restoration process uses the HWX-30 infrared heater to bring the damaged asphalt or pothole, as well as a portion of the surrounding pavement, to 375-400 degrees. Heatwurx’s proprietary polymers, oil strips, along with a small amount of recycled asphalt, are then added and mixed “in place” using the patented HWX-AP40 processor. Once the area is re-graded, it forms a seamless, water-resistant, permanent repair. Two workers can complete the job in about 30-45 minutes, after which a car or bicycle can ride over the repair and not know it’s just been repaired.