Dynetek Industries Forms Joint Venture with Sejung Co. of South Korea

Calgary-based Dynetek Industries Ltd. announced the formation of Dynetek Korea Co. Ltd. (DNK Korea), a South Korean joint venture 51% owned by Sejung Co. Ltd and 49% owned by Dynetek. Dynetek has established this joint venture to maximize its penetration of the Korean market for lightweight compressed natural gas and hydrogen fuel storage cylinders and systems. The joint venture will be executed in three stages. DNK Korea will market Dynetek’s lightweight cylinders and systems on an exclusive basis in South Korea and to Hyundai Motor Group and its subsidiaries on a worldwide basis. Once sales produce sufficient economies of scale, Sejung will invest in the joint venture to develop a winding and systems assembly plant in South Korea (and possibly other markets to exclusively supply Hyundai in those markets). Third, once further economies of scale are achieved by DNK Korea, a liner production facility will be established in the company.