Symphony Environmental Technologies PLC (AIM:SYM, FRA:XP7) (AIM: SYM) has unveiled a “significant” collaboration with Meditech Global through the conclusion of four separate agreements on distribution, manufacturing, marketing and corporate investment.
The plan is to speed up and expand sales of d2w and d2p technologies and finished products in China and globally, through Meditech's network of manufacturers and commercial end-users.
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Meditech is the holding company of a group of glove manufacturers with factories in Malaysia and China, specialising in medical-grade nitrile disposable gloves.
Under the ten-year distribution agreement, it will commercialise Symphony’s d2w and d2p additive and masterbatch technologies in China. They initially agreed on exclusivity to five large Chinese companies but this may be expanded.
Meditech will also purchase trial quantities of Symphony's d2p and d2w additives under a manufacturing agreement, to produce prototype batches of gloves containing d2p and/or d2w and to seek certification in the EU and the US.
If the trial goes well, the pair will agree on commercial quantities, while Meditech will pay a royalty for the use of Symphony's IP and branding.
The manufacturing agreement is for an initial five-year term and Meditech has stated its ambition that all gloves manufactured by it will be made with d2p anti-microbial and d2w oxo-biodegradable technology before 2024, the AIM-listed firm noted.
The supply will be exclusive if production reaches 100mln gloves per year.
The marketing agreement saw Meditech appointing Symphony as an authorised but non-exclusive global distributor for its nitrile gloves made with Symphony's d2p and/or d2w technologies, with exclusivity based on sales reaching a certain threshold.
Finally, under a corporate agreement, Meditech will acquire a stake in Symphony that is a minimum of 2.5% and a maximum of 20%.
"These agreements will provide Symphony with a much stronger presence in the Far East and will give us a secure supply of gloves made with our antimicrobial and/or biodegradable technology for our growing international trade in gloves,” said Symphony’s chief executive Michael Laurier.
“In addition, we welcome Meditech's agreement to invest in Symphony so that our commercial and corporate interests are more closely aligned."
Shares surged 18% to 26.48p on Monday morning.