Eden Innovations signs product development deal with Korean manufacturer

Eden Innovations ASX EDE Tasman Resources TAS KC Industry Korea concrete EdenCrete roads construction
Eden Innovations has teamed up with KC Industry to develop concrete products for the Korean market using Eden's EdenCrete additives.

Clean technology developer Eden Innovations (ASX: EDE) has signed an agreement with Korean-based concrete manufacturer KC Industry to jointly create a range of enriched concrete, mortar and grout mix designs for use within Korea.

The agreement will allow both parties to test, develop and integrate Eden’s EdenCrete range of carbon-strengthened concrete additives into KC’s existing precast concrete product line-up for Korea’s growing construction market.

Testing and development will take place in the US and Korea, and is expected to take up to six months, after which it is anticipated Eden and KC will enter a long-term collaboration to include pricing and terms of supply.

EdenCrete is primarily used to improve the performance of concrete used in the construction and maintenance of roads, bridges and other infrastructure.

It is designed to significantly improve tensile and flexural strength without comprising the concrete’s compressive potency, permeability, or corrosion resistance, resulting in greater bearing capacity for applications such as slabs on grade, columns or footings; improved resistance to abrasive wear; and significantly reduced shrinkage.

Eden Innovations said EdenCrete could be potentially incorporated in a range of other concrete applications including high-rise building construction, marine and coastal applications, water storage and pipelines, and pre-fabricated concrete structures and products.

Concrete demand rises on highway network plans

Korea’s demand for precast concrete will increase in coming years, as the country’s highway network is expanded from approximately 4,000 kilometres of road in 2013 to a targeted 6,500km by 2020, including the construction of additional bridges and tunnels.

Approximately 40% of the total number of highways will be built with concrete.

The country is also in the process of planning the Great Line Express subway, which involves the construction of a 43.78km-long, high-speed underground subway main line and supporting infrastructure.

The five-year project will start in 2019 and is expected to require large quantities of precast concrete segments to reinforce the tunnel system as well as precast concrete power boxes for the associated power and communications network.

KC Industry currently services the whole of Korea’s precast concrete needs, operating its own precast plant at Yeoju as well as a network of five other plants across the country which manufacture for KC on a contract basis, using the company’s designs and quality control conditions.

In addition to using EdenCrete in its precast concrete products, KC intends to use the products in a broader range of target markets including new concrete highway pavement construction, repairs and road barriers.

Tasman Resources’ precast upside

In addition to exploring for multiple minerals, Tasman Resources (ASX: TAS) indirectly holds a 37.63% stake in Eden through its wholly-owned subsidiary Noble Energy.

Tasman claims its interest in Eden offers it a potentially “significant” upside and plans to hold this stake in the “long term”.

Today’s new of Eden and KC’s product development deal provided that upside for Tasman, with the company’s share price reaching an intraday high of A$0.058 before ending the day up more than 8% at A$0.051.

Meanwhile, Eden finished trade more than 14% higher at A$0.064.

    Join Small Caps News

    Get notified of the latest news, events, and stock alerts.