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Barr Ellison Solicitors – commercial property
14 April, 2011 - 14:53 By Kate Sweeney

PDX in deal with Alfred Kaercher subsidiary

PDX-Pieper

PDX – a Business Weekly Killer50 company – has formed a dedicated subsidiary, DDX Solutions AG, through which it will work with KFT to deliver a series of innovative products starting this calendar year.

KFT, a wholly owned subsidiary of Alfred Kaercher GmbH, the world's leading manufacturer of high-pressure cleaning and disinfectant equipment will join with PDX to develop, produce and market civilian and military decontamination and disinfection products for the global market.

The cooperation combines KFT's experience as a world leader in decontamination solutions and its core competencies in manufacturing, distribution and after sales support, with PDX's best in class technology to form a new product range focused on quality, mobility and efficiency.

The relationship between KFT and PDX has been established by two multi product contracts - a development agreement and a distribution agreement - that create clear lines of responsibility and accountability.

The structure affords PDX ownership of the products as well as control over design and development. KFT will manage manufacturing orders, inventory and spare parts. KFT will also be responsible for marketing and distribution and will also bear all marketing and distribution costs.

In addition, as part of the agreement, KFT will guarantee a minimum sales threshold to be agreed each year to maintain its right to distribute the jointly developed products.

Under the agreements, PDX will be entitled to receive a margin on all sales of equipment, parts and chemical products.

The first product to go to market will be the First Responder System, utilising PDX's atomisation technology.  Prototype testing of both the backpack and trolley models is well under way with mass manufacture expected to begin in Q3 of this calendar year.

Sales pipeline development will begin shortly thereafter with the first product shipments due in Q4 of this calendar year. The initial feedback from premarketing has been encouraging, with a number of major organisations expressing high levels of interest.

KFT and PDX are also developing a hospital mobile decontamination product, the development of which has been accelerated due to positive market feedback.

PDX expects a further three product lines to be delivered later this year and through 2012. Further details will be provided in due course.

Roel Pieper, CEO of PDX, said: “With this agreement PDX is now extremely well placed to drive significant commercial returns from the multi-billion dollar global mobile decontamination market.

“The agreements with KFT give us a competitive product offering in the global chemical and biological decontamination markets, whilst NDX, PDX's joint venture with the UK's National Nuclear Laboratories, positions us in the nuclear decontamination market as well. I am extremely excited by this business and I am looking forward to a long and fruitful cooperation with KFT.”

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