Last week International Fuel signed marketing and distribution agreement with Unipart Rail (part of The Unipart Group of Companies), the U.K.’s leading distributor to the rail industry, providing Unipart Rail the rights to sell International Fuel’s unique fuel additive formulations for fuel economy to the U.K. rail market. This relationship was a major step forward for International Fuel by providing a powerful platform to expedite the commercialization of DiesoLiFTTM 10 in the U.K rail market.
As we noted then “Success in the U.K. will enhance the company’s credibility and help corporate efforts with the numerous European rail operators with whom the company is in active commercial discussions.”
Today --building on the publicity and excitement of the Unipart deal-- the company announced that “its German-based distribution partner, Nordmann Rassmann (“NRC”), has been successfully marketing DiesoLiFTTM 10 to numerous European rail operators. Through the efforts of NRC’s affiliates in central Europe, IFT will begin field demonstration and validation processes with rail operators in Romania (Regiotrans), Poland (PKP LHS) and The Czech Republic (Ceske Drahy) in 2011.”
“Nordmann Rassmann has been a very productive distribution partner for IFT,” said Axel Farhi, IFT’s Director, Global Business Development. “They have been successfully marketing DiesoLiFTTM 10 to rail operators throughout Europe. In addition to Romania, Poland and The Czech Republic, we expect Nordmann Rassmann to arrange as many as eight or more commercial opportunities with rail operators in 2011 and 2012.”
Using distributors to expand business is a key part of the International Fuel strategy. The commercialization of International Fuel’s technology in both Western and Eastern Europe is now accelerating at a rapid pace--and should translate into an inflow of orders to the company over the next year.
We expect to see a flurry of additional announcements relating to distribution deals in the coming weeks.
Harris L. Berenholz, CFA
Disclosure: I own shares in IFUE