These two major companies will be providing their expertise to create a Smart Factory. One company supplying the hardware and software and the other bringing the mechanical platforms and HVAC auto parts.
Kontrol Energy Corp. (CSE: KNR, OTCQB: KNRLF, FSE: 1K8) (the "Company" or "Kontrol") and Toyota Tsusho Canada Inc. 'TTCI' have signed an agreement to implement Smart Factory technology solutions combining Kontrol's Internet of Things (IoT) hardware and software solutions with TTCI's existing production, operating improvement platforms, and power generation / HVAC products for the North American automobile and parts OEMs.
The agreement reveals Kontrol and TTCI intend to establish a joint venture company to provide technology solutions and services to OEMs in the automotive sector to optimize production and manage energy in real-time. A focus on optimizing production and energy management to improve operating efficiencies and reduce operating costs through digitization, real-time data analysis and machine learning will provide global OEMs with a compelling integrated solution.
More specifically, Kontrol will design and provide monitoring software, quality assurance and technical support to TTCI and its customers, and design and install building automation systems and heating and ventilation equipment, while TTCI will procure customers, conduct engineering and installation and after-sales services with customers.
The agreement does not prescribe specific timelines or milestones or revenues, but initial pilots are expected to begin in April 2019, with the goal of scaling the offering across North America in 2019.
Any profits from the joint venture would be shared between Kontrol and TTCI on a pro rata basis based on services provided by each of Kontrol and TTCI. A more comprehensive news release will be issued once the pilot phase is complete and a definitive agreement is signed.
Paul Ghezzi, CEO of Kontrol Energy Corp. announced that they are pleased to enter a significant new vertical market opportunity with a strong global partner in TTCI. Working in partnership with a global industrial leader such as Toyota Tsusho also provides them with an opportunity to scale their technology solutions across a large potential global customer base.
Mr. Hidetoshi Tada, President of TTCI added that they selected Kontrol as their partner in the Smart Factory initiatives due to their extensive experience in developing technology solutions which integrate IoT hardware and software to create a smart environment to optimize operating efficiencies. This agreement with Kontrol will enable them to deliver production and energy efficiencies and give their customers a technology solution to drive down their costs and gain a competitive advantage.
According to MarketsandMarkets.com, the smart factory market is expected to reach USD 358.01 Billion by 2023. Smart factory refers to various fully-integrated automation solutions adopted for manufacturing facilities. A fully optimized factory can provide a competitive advantage to OEMs seeking to reduce their overall operating costs and improve their profitability.