As more owners specify closed-loop scrubbers, Ballerup, Denmark based LiqTech International, Inc. (NASDAQ: LIQT), which manufactures and markets highly specialized filtration technologies, has won it’s largest single order to date for its proprietary ceramic silicon carbide water filtration systems for marine scrubber applications.
According to LiqTech “the order was placed by one of the world’s three largest shipping companies and follows the recent installation and system deployment by this same customer on the two largest containerships in the world.” The new orders are expected to be delivered starting in late 2019, with completion in 2020.
Sune Mathiesen, CEO of LiqTech International, said, “We are very pleased to have received this additional $8.4 million marine scrubber order from one of the world’s largest and most successful shipping companies, as it reinforces LiqTech’s position as a leading supplier of ceramic silicon carbide water filtration systems for marine scrubbers. This particular shipping customer has placed multiple orders over the last three years for LiqTech’s proprietary water filtration systems and we are pleased to report that to date, we have received orders representing over 95% of their planned or completed scrubber installations. We continue to see strength in marine scrubbers as an effective compliance solution to IMO 2020 regulations, particularly from new Asian suppliers who have recently entered the market and are utilizing LiqTech systems as an effective solution for closed loop applications.”
LiqTech says that, based on industry data, it currently maintains a significant market share for closed loop marine scrubber filtration installations or planned installations. New regulatory mandates in China, Singapore and other countries that ban in port open loop scrubbers is driving additional demand for closed loop scrubbers. By the end of 2019, industry forecasters estimate approximately 4,000 open loop installations or planned installations for new ship builds and retrofits of which LiqTech believes that many of these open loop scrubber installations will likely need future conversion to closed loop systems.
Mathiesen continued, “I am pleased that LiqTech continues to strengthen its market leading position for marine scrubbers and with the growth we are seeing in new orders from some of the world’s most prestigious shipowners. Despite the recent market volatility in our share price, we remain focused on managing the business with an eye on both revenue growth and increasing profitability as we continue to implement our new product and margin optimization initiatives. The addressable market opportunity remains strong for our solutions and we continue to receive numerous orders from both new and existing customers which underscores the high quality of the LiqTech system. I look forward to continued progress in the next year and the report of our third quarter financial results in November.”