Photonic technology developer Zecotek Photonics Inc. and crystal array developer Shanghai EBO Optoelectronics, in implementing their exclusive Lutetium Fine Silicate (LFS) scintillation crystal supply agreement, have established control systems for product delivery, laid out a marketing and sales plan to target the key OEMs in China and established a new subsidiary.

“We are working closely with the EBO Optoelectronics management team as we set the ground work to fulfill over $21 million worth of LFS crystals over the next three years,” said A.F. Zerrouk, chairman, president and CEO of Zecotek Photonics. “We have implemented a state-of-the-art quality control system to ensure standardization of our crystal products. The system also allows batch testing of crystals which ensures stable and reliable supply of our high-performance LFS products. At the same time, we are working with EBO to develop marketing and sales plans to grow the value of the agreement. EBO Optoelectronics has an extensive client list that includes all of the top PET OEMs in China. Over the coming months, we will target companies that were not included in the initial contract as we look to leverage our relationship with EBO and expand our footprint within the Chinese market place.”

Zecotek has established Zecotek China, a new subsidiary, which will operate under Zecotek Imaging Systems. Zecotek China will be able to conduct business with greater efficiency and ease within the region with certain tax incentives and infrastructure within the local business environment. The subsidiary will be able to work more closely with EBO Optoelectronics and its customers both in and out of China. It will also allow Zecotek to take advantage of favorable trade conditions thereby reducing the cost of production and improving margins.

“The current business climate in China demands that we have a direct and local presence in the country,” Zerrouk said. “By breaking down barriers to doing business, we are bringing Zecotek closer to our customers in China. We will be able to offer services and terms that were difficult if not impossible to offer as a foreign company.”

EBO Optoelectronics is the largest crystal array producer and supplier in China and uses Zecotek’s LFS scintillation crystals exclusively for its PET arrays. Zecotek has created a strategic partnership with EBO Optoelectronics with the goal of becoming the leading supplier of scintillation crystals and other the key components in China and around the world.