Sprintex signs $6m Industrial Air Compressor Agreement

Sprintex to develop, manufacture and supply stand-alone high-speed centrifugal compressor systems for use in the water treatment industry

Highlights:

• 3-year agreement with Nanjing RGE, a manufacturer of wastewater treatment equipment and systems in China
• RGE will purchase stand-alone air supply systems from Sprintex which will include a Sprintex-Aeristech e-Compressor and controller
• RGE and Sprintex will collaborate on design of dedicated water treatment systems from 10-60kW
• Minimum order quantity of 400 units over the first 2 years
• Minimum order value of RMB30m (~A$6.3m) for the first 2 years
• RMB500,000 (~A$100,000) advance payable against Q1 2022 deliveries

Sprintex Limited (ASX: SIX) is pleased to advise that it has entered into a Strategic Procurement and Cooperation Agreement with Nanjing RGE Membrane Tech Co. Ltd (RGE) to develop and supply stand-alone air supply systems used in the water treatment industry in China.

RGE is a specialist water treatment membrane bioreactor and water treatment system company, with product sales and services covering all provinces in China.

Sprintex will customize and develop a series of stand-alone high-speed centrifugal air compressors for use in the water treatment industry with rated power covering 10kW to 60kW, including additional agreed systems and controls.

Overview:

• Sprintex will supply a minimum of 400 units (of mixed models) over a two-year initial term, 100 of which must be purchased in the first year and 300 in the second year
• Minimum contract value of RMB30m (~AUD 6.3 million) over the first two years of the initial three-year term
• First deliveries to be completed in Q1 2022, quarterly minimums apply. 

Jay Upton, Sprintex Managing Director said, “We are excited to cement the first industrial air customer for our newest division. Whist the clean energy market is providing many opportunities for the future, the agreement with RGE is a major step forward in the Company’s expansion into the electric compressor market and provides an entry and a secure foot-hold into more mature industrial markets, that are hungry for the efficiency improvements that we can offer.  Every efficiency improvement in an industrial process is a benefit that goes straight to the bottom line, so we are expecting to see more demand from the industrial sector as more companies become aware of our enhanced efficiency proposition for clean air compressor applications.”

Baochang Zhou, RGE Executive Director remarked, “A high-speed electric centrifugal compressor is the ideal solution for water aeration applications. Replacing the traditional roots type compressors with Sprintex eCompressors in a medium size (320kw) water treatment site, will save about 500,000kWh electricity annually for our customer, cut 375 tonnes of CO2 emissions and save about RMB500,000 (AUD104,000) in costs in the process! We also note that the Sprintex compressor system features water-cooling and smart control, which makes it over 20% more efficient and reliable than the compressors we have been using.”

Following the establishment of a R&D and production facility in China  and electric drive and controllers for compressors, Sprintex has been pursuing commercial applications for its products for clean air industrial air and hydrogen fuel cell sectors. The agreement with RGE is Sprintex’s first in the industrial air sector and additional opportunities are being pursued.