Sprintex (ASX: SIX) has secured a $9.3 million contract for the supply of its G15 series jet blowers to Chinese aeration equipment supplier Guangdong Baode Technology Co (BD Compressor).

The three-year private label deal will see BD Compressor distribute the high-speed blowers under its own brand and styling to China’s growing pond-based aquaculture sector.

It has a minimum quarterly order commitment of $320,000 and BD Compressor must place total annual order volumes of up to $3.85 million to maintain exclusivity, with the first upcoming order providing Sprintex with early revenue visibility and operational scale-up.

Fast-Growing Sector

BD Compressor formed in 2016 as a specialist in screw air compressors, air compressor machines, precision filters and refrigerated dryers.

The Guangdong-based group has strategically positioned itself to service China’s $300 billion pond-based aquaculture market, which is a major in-country industry and fast-growing sector.

Key drivers for the growth have been an increasing domestic demand for seafood and expansion of export markets; and government mandates for more energy-efficient and environmentally-sustainable equipment.

Aquaculture Production

China currently produces around 50 million tonnes of aquaculture — more than 60% of global production — annually, with more than half the total output coming from southern regions including Guangdong.

Many of the nation’s aquaculture operations are large-scale, with over 500 pond sheds per site and each shed requiring multiple blowers for aeration and water quality management.

A single large farm may need hundreds of blowers, providing a potentially-lucrative opportunity for Sprintex and BD Compressor.

Chinese Expansion

“This agreement is a significant milestone for us as we expand into the world’s largest and fastest-growing aquaculture market,” Sprintex managing director Jay Upton said.

“BD Compressor’s established reputation and national network together with our leading technology is expected to deliver thousands of units into the sector and result in considerable environmental and cost-saving benefits.”

Mr Upton said Sprintex’s oil-free, high-efficiency blowers could deliver energy savings of more than 50% compared to conventional technologies, placing the company in a strong position to meet China’s regulatory and economic needs.