Sprintex Ltd has laid a solid foundation for near-term growth and “is very well positioned to solidify its position as a market leader in energy-efficient technologies and unlocking value for shareholders”, according to executive chairman Steven Apedaile.
The company made strong progress during the December quarter underpinned by sales commitments from distribution partners of A$30 million in the UK, Turkiye and India.
Operational momentum
"Further, the company’s operational momentum continued with pleasing results from trials undertaken with a leading aquaculture producer in Turkiye, which highlighted that the G15 jet blower can produce 70% in energy savings,” Apedaile said in the company’s quarterly report.
"This provides exceptional validation of our technology and results will be used for more aggressive business development over the coming months.
"Further supporting the company’s growth trajectory and allowing for financial flexibility, the company entered into a binding underwriting agreement with major shareholder, China Automotive Holdings.
"Importantly, this agreement will support our growth trajectory and serves as a considerable vote of confidence in our stated strategy.”
UK expansion
The December quarter proved strong for Sprintex with progress on a number of key expansion fronts with new distribution partnerships leading to total global order value of A$30 million minimum over the next five years.
Market expansion continued in the UK with a A$17.5 million minimum order commitment secured with Air End Repair for UK exclusive distribution.
READ: Sprintex UK distribution agreement brings total global minimum order value to A$30 million
The UK turbo blower market was valued at US$182.16 million in 2024 and is projected to grow at a CAGR of 4.3%.
Growing demand is driven by sustainable industrial practices and the expanding manufacturing sector. High energy costs present an opportunity for rapid ROI with Sprintex's energy-efficient solutions.
India progress
In India, a A$7.16 million minimum partnership was secured with Euroteck Environmental, which will serve as the exclusive distributor of Sprintex G-Series Blowers in India.
Five custom G15 Jet Blowers have been delivered to Euroteck for evaluation in their wastewater treatment systems with that company planning to integrate Sprintex’s technology into their existing systems, replacing outdated blowers.
READ: Sprintex delivers five G15 Jet Blowers to Euroteck India for evaluation
Türkiye growth
Growth was also achieved in Türkiye as G15 trials achieved 70% energy savings, leading to purchase orders and Net 0 Enerji secured a contract with WeCycle to be the global launch customer of the new Sprintex G25 Blower.
Net 0 Enerji has made significant progress in market penetration, including the recent order of US$120,000 (~A$184,000) following successful trials.
AirTech validation
Sprintex’s 4kW G15 units were successfully validated by AirTech at their German lab and results achieved were consistent with Sprintex's internal testing.
AirTech will shortly begin 7.5kW testing and discussions with key accounts.
Mest Water commissioning
European manufacturer Mest Water is also advancing its work supported by Sprintex. Mest Water has a large waitlist of customers, including two that require more than 200 systems individually.
Prototype testing was completed in December following a meeting with Sprintex and Mest Water at the group’s new 31,000-square-metre facility on a 5-hectare lot which will support the forecast production scale-up.
Final commissioning of the first Sprintex compressors will be completed on January 31, 2025, in the Netherlands with completion anticipated a week following.
After commissioning, Sprintex anticipates receiving a contract to develop two additional compressor models -500kg/hr and 1500kg/hr while a firm production order is expected for the updated 1,000 kg/hr machine.
This work is expected to support Mest Water's expansion and further strengthen the strategic partnership.
Near-term outlook
Sprintex remains committed to growing its distribution networks with negotiations well advanced while continuing to develop its technology including new product innovations in blower technology and implementation of energy-efficient solutions in various sectors.
Market expansion initiatives:
- Focus on penetrating European and MENA markets.
- Participation in major industry events and exhibitions; World Future Energy Summit (Abu Dhabi) and Hannover Fair (Germany).
Product roadmap:
- Introduction of next-generation blowers with enhanced automation & IoT features.
- Global launch of game-changing G25 series complete January 2025.
- Scaling production capacity in Malaysian and Suzhou facilities.
"During the current quarter, the company remains focused on converting its A$30 million in distribution agreements to meaningful revenue, as well as finalising commissioning of the Mest Water compressors, which is expected to complete by early February,” Apedaile added.