By Sylvie Dale
Associate Online Editor
PALM DESERT, Calif. & VANCOUVER, B.C., Oct. 4, 2000—USFilter and Service Systems International (SVSY) have announced plans to form a strategic alliance to market Service Systems' ultraviolet disinfection technology for water and wastewater applications.
USFilter's Wallace and Tiernan Products group, Vineland, N.J., has signed a letter of intent to form an exclusive alliance, in which Wallace and Tiernan Products will sell Service System's Ultra Guard(r) advanced ultraviolet disinfection technology.
Immediately following news of the alliance, the stock had risen 1/128 to a price of $1 per share, still lower than the company's record high of $1.093 on Oct. 3.
Joe Millen, executive vice president of USFilter, said the alliance will ensure that USFilter remains a leader in this segment of the water and wastewater treatment industry.
"The Wallace & Tiernan Products group has 85 years of continued service to its customers for the supply of disinfection equipment applying various technologies. With UV disinfection systems, we will be even better positioned to serve an evolving market need."
According to Ken Fielding, Service Systems president and CEO, "The alliance will represent a major milestone in a string of contract awards and independent third party validations of the advantages, energy savings and superior performance of Ultra Guard® treatment systems."
The technology aims to improve upon conventional systems with:
- Fewer lamps to treat a given flow
- Enhanced hydraulics resulting in consistent high quality disinfection
- Operational ease and flexibility with its modular single lamp reactors
- Automatic dose pacing and lamp wiping for unattended operation
- Internet-enabled for centralized remote system control and monitoring
- Potable water disinfection capability
- Higher lamp and hydraulic efficiency allowing for cost effective disinfection of murky waters, even combined sewer overflows
The marketing alliance with USFilter is definitely the most significant development in the company's history, said Peter Colak, Vice President of Sales & Marketing for Service Systems.
"In a departure from its normal strategy of aligning with large, established firms, the world's leading environmental company has decided to join forces with Service Systems as the exclusive OEM for its UV offering. Given that the technology's tremendous O&M cost savings far outweigh equipment capital costs, our greatest value would be felt by a firm that derived revenues from WWTP operations."
Consummation of the alliance is subject to negotiation and execution of definitive agreements and other customary conditions.
A supplier of chemical-feed equipment used in the treatment and disinfection of potable water and wastewater, USFilter's Wallace & Tiernan Products group designs and manufactures a line of disinfection/chlorination equipment, as well as analytical instrumentation and controls, chemical-metering pumps, dry feeders, flowmeters and systems.
USFilter, a Vivendi Water company, is the leading global provider of commercial, industrial, municipal and residential water and wastewater treatment systems, products and services, with operations in more than 100 countries.
Service Systems International (SVSY), based in Burnaby, BC, Canada, manufactures and markets a comprehensive range of water and wastewater disinfection systems using its patented UltraGuard(r) technology. For more information about this technology, visit http://www.servicesystems.com.
