BPC Instruments AB announced that the Company has signed an agreement to establish a new Joint Venture firm in Malmö (the "JV" or "Nordic Assembly AB" as the preliminary registered company name) for assembling the core modules and key components of Company's flagship products. This is in line with the Company's objective to significantly improve the efficiency and stability of production, as well as shorten the product delivery time by standardizing and modularizing the whole production process including the management of its global supply chain, core modules assembly, quality control, and final product configuration. The JV will enable BPC to accelerate and increase its production volume to meet the growing demand for the Company's smart analytical instruments.

In recent years, there has been an increasing challenge and demand for securing the supply chain and production regarding the ongoing global supply chain crisis. BPC has been working on its long-term strategy for better management of the Company's manufacturing by teaming up with partners to standardize and modularize the whole production process for more cost-efficient production and shortening the delivery time to its clients. BPC will have 15% ownership and a seat on the Board for strategic decision and management at the JV.

The production demand of BPC will be a solid foundation for the JV to focus on initially, but the manufacturing business of JV intends to be expended to other external clients from Sweden and other Nordic countries in the future. BPC is also going to have full control of its components supply chain and inventory of products. This will further secure and optimize production, shorten the product's delivery time and ensure product quality.

It will also enable BPC to future-proof and increase the production volume to meet the increasing global demand for the Company's high-quality analytical instruments. The production of BPC's products has been outsourced over many years. Since 2021, BPC has begun the process of moving product configuration tasks and logistics in-house.

The relocation of the current manufacture of BPC's core product modules to the JV is scheduled from the 1st of March with the transformation of the manufacturing process already underway.