DSTT’s manufacturing facilities, including the machines, are maintained by DSTT. Plant safety specifications are also designed by DSTT.
With respect to the procurement of raw materials for initiators/PGGs, DSTT purchases raw materials from third parties and from DC. DSTT’s procurement section is responsible for many aspects of raw materials procurement, such as planning purchasing schedules and performing the purchasing function, etc. DSTT is also responsible for identifying vendors of acceptable quality and negotiating the purchase agreements with these vendors.
DC grants licenses to DSTT for use of the manufacturing technology and related know-how for manufacturing initiators/PGGs. In return, DSTT pays royalty fees to DC based on the technical assistance agreement between DC and DSTT for the initiators/PGGs manufactured by DSTT.
Additionally, DC provides technical support during the manufacturing processes by sending engineers to DSTT, and providing technical instructions and employee training to DSTT employees. DC also provides assistance in various ways to DSTT when necessary, and DSTT compensates DC for these services.