Sprintex opens factory in China, opens door to the potentially lucrative Chinese market
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The opening of the manufacturing facility in China will also open the door for the company’s twin screw compressor product to the Chinese automotive market and industries.
Recently listed supercharger specialist, Sprintex (ASX:SIX), is set to expand its operations and manufacturing capabilities in China, after announcing the establishment of Sprintex Energy Technology in the city of Suzhou in Jiangsu Province.
The refurbished 1,500 sq metre facility will become the company’s new engineering centre and production base for Sprintex in China.
The factory provides a production capacity of 50,000 units per annum of high-speed electric compressors.
These high-speed electric compressors have recently seen increasingly strong demand in clean emission transportation, clean energy, and industrial applications.
Hybrid vehicles, hydrogen fuel cells and waste water treatment are just some of the industries that are seeking these high-speed compressors.
Sprintex China has obtained a series of subsidies from the Chinese Government for its high-tech operations and clean energy profile.
The subsidies include three years of free rental subsidised by the local government, as well as additional long term project grants, which include a local tax exemption of up to 80 per cent.
Importantly, the development of these compressors in China will open the market for Sprintex’s flagship and renowned twin screw compressor to the Chinese automotive market and industries.
To ensure the swift development of the product in the country, the company has recruited an experienced operational and technical team from leading turbomachinery, electric motor and car manufacturers.
This highly experienced team includes Spritnex Limited director Li Chen, who is based in Shanghai and will lead the operations of Sprintex China.
Li is a China registered senior engineer with a Masters degree in Mechanical Engineering from University College London.
The company has already received several expressions of interest from targeted customers and potential corporate partners in China.
“The establishment of Sprintex China opens significant opportunities for Sprintex as it expands its product range internationally,” says Sprintex CEO Jay Upton.
“We’ve assembled a strong team and look forward to implementing our expansion strategies,” he added.
Armed with the recent $6.5 million recapitalisation, Sprintex has relisted on the ASX after being suspended since 2018.
The company is now back with fresh funds, new management, and a significantly reduced cost base that will make it a much more competitive outfit.
Importantly, Sprintex is now also debt-free, which will result in further improvements to its bottom line.
Sprintex designs and manufactures superchargers for use in a wide variety of combustion engines.
Its flagship is the proprietary owned technology and patent-protected twin screw supercharger product.
Apart from China, the company also owns a manufacturing site in Malaysia.
Recently, Sprintex announced the development and manufacture of a new and exciting supercharger system built for the Toyota Tacoma 3.5 V6 pickup truck range.
The new supercharger is developed to meet the rising demand in the USA, Middle East and Asian markets – places where the Tacoma is fast becoming a popular choice for off-road and recreational lifestyle enthusiasts.
The company is also currently pursuing a couple of significant pipelines with major OEMs in Asia, and has its eyes on the hydrogen fuel and EV markets.
This article was developed in collaboration with Sprintex, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.