Montreal-based Smardt Chiller Group, world leader in oil-free centrifugal cooling, today completed its formation of a global joint venture with TICA Group, China market leader in high-efficiency ventilation solutions.
The new joint venture will continue to develop the Smardt and TICA brands and the existing Smardt factories in Montreal, Melbourne, New York, Guangzhou and Stuttgart, where immediate expansion is slated. Smardt’s existing global distribution channels will add a new range of TICA air-handling units from 2019 onwards.
TICA’s extensive array of factories and R&D facilities in Nanjing, Tianjin, Guangzhou, Chengdu and Kuala Lumpur will support further expansion of Smardt’s oil-free centrifugal chiller product range, in Chinaand global markets. TICA holds a controlling interest in the new joint venture, which plans to accelerate development of comprehensive oil-free solutions in its key global markets of metros, data centres, pharmaceutical, manufacturing, healthcare, automotive, hotels, district cooling and process cooling.
The new group plans gross revenues of some USD 1 billion and in major energy-efficiency projects shows rapid growth.
Smardt was founded in Montreal in 2005 by Turbocor founder Roger Richmond-Smith, who remains Smardt chairman and CEO, working closely with Jiang Li, chairman and CEO of TICA. No changes in senior personnel are contemplated in the transaction, whose financial details are not disclosed.
“I’m delighted that this joint venture is now in place,” said Mr. Richmond-Smith today. “Our last joint venture, between Turbocor and Danfoss, powered the worldwide development of the breakthrough oil-free magnetic bearing technology we pioneered in Australia 25 years ago. This TICA-Smardt joint venture aims to bring chilled water plant and air handling systems together, driving oil-free technology through to optimised whole-building solutions. Advances in artificial intelligence make this prospect totally feasible,” he said.
“The joint venture brings added value to all our larger existing customers as they struggle to minimise their energy costs,” said Jiang Li today. “Our work in larger systems – airports, metros, healthcare, electronics, clean rooms, data centres – all indicates very large potentials for oil-free technology in driving down total costs of ownership,” Mr. Jiang continued. “There’s no overlap between TICA’s and Smardt’s existing resources, and enormous potential synergies in better applying our extensive R&D facilities, in China as well as with international partners. For the new group’s 2500 people, the new joint venture means increased opportunities in many new areas.”
“There’s a potential revolution here for our customers, just waiting for us to make it happen,” Mr. Jiang concluded.