Sprintex Signs A$9.3m Private-Label Contract with BD Compressor for G15 Blowers

Sprintex’s Strategic Leap into China’s Aquaculture Sector

Sprintex Limited (ASX, SIX) has taken a significant step forward by signing an exclusive three-year private-label supply agreement with Guangdong Baode Technology Co., Ltd. (BD Compressor), a leading Chinese supplier of aeration equipment. Valued at A$9.3 million, this deal marks Sprintex’s first private-label partnership and opens the door to China’s enormous and rapidly expanding aquaculture market.

Under the agreement, BD Compressor will distribute Sprintex’s G15 series high-speed jet blowers under its own branding, targeting the pond-based aquaculture sector in China. This sector alone accounts for over 60% of global aquaculture production, with China producing approximately 50 million tonnes annually. Guangdong Province, where BD Compressor operates, is a powerhouse region contributing more than half of China’s output, making it a strategic foothold for Sprintex.

Market Dynamics and Environmental Drivers

The Chinese aquaculture industry is valued at over US$200 billion annually and is growing at an estimated 4 to 5% per year. This growth is fueled by rising domestic seafood demand and expanding export markets. Additionally, government regulations are increasingly pushing for energy-efficient and environmentally sustainable equipment. Sprintex’s oil-free, high-efficiency blowers, which deliver over 50% energy savings compared to conventional technologies, are well positioned to meet these evolving needs.

Large-scale aquaculture farms in China often require hundreds of aeration units to maintain water quality and oxygen levels. The agreement’s minimum purchase commitments; A$2.25 million in year one, rising to A$3.85 million by year three; provide Sprintex with multi-year revenue visibility and the operational scale to meet growing demand.

Implications for Sprintex and Future Growth

Sprintex Managing Director Jay Upton highlighted the significance of the deal, stating that the partnership with BD Compressor combines Sprintex’s advanced technology with BD’s established distribution network. This collaboration is expected to deliver thousands of units into China’s aquaculture sector, generating substantial environmental and cost-saving benefits.

Beyond the immediate contract, the exclusivity applies only to the pond-based aquaculture market, leaving room for Sprintex to explore additional opportunities across other sectors in China. The company is also reviewing similar private-label opportunities, signaling a broader strategy to leverage its technology in new markets.

Overall, this agreement represents a pivotal moment for Sprintex as it diversifies its revenue streams and gains a foothold in the world’s largest aquaculture market, aligning with global trends toward sustainability and energy efficiency.