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Report

Teaser, summary, work performed and final results

Periodic Reporting for period 2 - HTPush (Universal and compatible system for plumbing and heating)

Teaser

Summary

The aim of our project is to design, manufacture, validation and commercialization of an innovative line of coupling elements and control fluid flow, for both domestic hot water and heating circuits.

The innovation of our project lies in the universal nature of our design, compared to competitor\'s equivalent product available on the market, which is characterized as a non-compatible design interbrand pipe.

The global construction market has suffered a slowdown in recent years. Due to this slowing competition, brands work with high intensity and constantly need a better positioning and new ways to get more part of the market.

To achieve this, these brands are increasing them emphasis on innovation. After decades of domination by major international brands of in relations with major distributors also with the retailers, in recent years this trend is changing. The big distributors knows the big value of his direct relation with the end consumer, them perfect knowledge of the market and the confidence with the consumer, they know this matters and they are changing his function like only distributors and they are trying to change to â€œsystem makersâ€ that is they are dedicated to agglutinate manufacturers specialized in different products that make it with their brand obtaining an innovative system, guaranteed and with its brand.

This explained from the side of the marketers / distributors, from the side of the small manufacturers quickly get a commercial network with specialized staff and a relationship of trust with the end customer.

So this is a very good collaboration for both parts. Win to win collaboration and this is the HTPâ€™s bet for future.

Work performed

HTpush product is playing in a high competitive sector and very technologically demanding, like is the Construction sector in general and especially the plumbing components.

Into the plumbing sector our system fight to open space face to very big corporations with a very long market presence. They had got a recognized image by the consumers.

In this way the Standards Certifications are the utmost importance in every market because obtaining them, the product proves its functionality, durability and transmit warranty and security so its the best commercial argument that you can get it. But its not enough to get it, is very important with which certifier company you get it and in which country.

From HTP have decided to get four Standards in four different countries taking into account the international references and focus markets:

1 AENOR: Spanish Association for Standardisation and Certification.

Spanish Association, Spanish plumbing sector reference. From HTP decided to get this certification by two motivations:

Because is the national reference in Spain, our origin country. Is very important for international trade to demonstrate presence into the origin country this issue transmit confidence. So even not considering to Spain like a priority market, we considered it necessary to get this Standard.
AENOR is company with a large experience and reference not only in Spain so getting it can open the doors to other countries on the furure.

2 BHRC: Iranian State Certification, belonging to Ministry of road & urban development. We had got a good product position in the Iranian market, so is very important to continue strengthening our position in this country getting the national standard. We are in achieving process. The management of this process is make it together our national client â€œFalahati Tradingâ€ due to the official documents are on Persian.

3 DVGW W534 By IMA Laboratory. German Certification, the most important for us is not that is a German reference but also is the most important global certification and international reference around all world on constructions Materials.

4 TKP Standard obtained by Stroytechnorm Company, Certification company for Russia and CIS countries. Countries with long tradition in plastic plumbing due to them extreme weather.

HTP this year has expanded its portfolio with new product ranges such as the large diameters for its PushFit system (40, 50 y 63) and valves in PPSU. Keeping with these new products betting on these concepts, easy, fast and safe systems.

HTP has made a great effort to disseminate its products using several ways:

Assistance to Fairs for the diffusion of product. In the last dates we have attended as visitors to the following international fairs:
Aquatherm Moscow
Mostra convenio Milan
ISH Frankfurt
ClimatizaciÃ³n Madrid
We have attended these fairs as visitors and have taken the opportunity to establish new contacts or reinforce old collaborations introducing the new range.

We have also attended Fairs with our own presence::
Kazbild (Astana)
Construct Tehran Exhibition
Isfahan Exhibition.

Visits to customers: After the first contacts obtained in the fairs visited we have made visits to the facilities of some potential customers and in which we have great confidence that soon they become habitual clients.

Visits to HTP plant: Depending on kind of customer, in some cases we decided, as the best option of the presentation of the new products, organize visits to our plant.

Final results

Following the above comment on the situation of the construction market worldwide. And after our commercial actions carried out until present we can specify the current situation of the project differentiating geographical areas:

EUROZONE: We maintain a close collaboration with our main partner and collaborator ROTH Industries with which we currently have an exclusive distribution contract for the following countries: Spain, Portugal, France, Germany, Denmark, Sweden, Finland, Norway, Poland, England , Chile, USA and Canada. The complications in the final development of the product have influenced us in delays in obtaining certifications detail primordial and unsolvable in these countries. We hope that once obtained all the requirements and certifications we can go out to market and confirm the good expectations that we have raised in potential clients.

EUROZONE not included on ROTH agreement: After telephone contacts and Mailing and visits we are very close to closing a distribution agreement with Valrom Industrie (Romania).

Russia â€“ CIS: As we have explained before these markets are not going through their best and our product is being influenced by the value depreciation of their currency. We are making great efforts for introducing the new products to go with market share or be well positioned for when the negative trend changes.

MENA: Specifically in Iran we have an exclusive trade agreement in force, which we have extended with the new products. There is great interest and although great sales of the new products have not yet been obtained if we have increased the volume of sales of HTP in the country and the image of company in this market is now much more solid.

ASIA: We have signed a distribution agreement with one of the strongest companies in the sector of the plumbing in India, they are currently manufacturers of the market-leading product, thermofusion fittings. So they have a wide market experience as well as a large distribution and commercial network.