Join our daily newsletter At The Bell to receive exclusive market insights
- Aeris Environmental (AEI) has entered a strategic alliance with a pair of leading Chinese businesses, Taitrust and Shanxi
- Under the partnership, Aeris will rapidly scale its key products; surface disinfectants and sanitisers
- The alliance is set to expand Aeris’ presence in the Chinese market, which is one of the world’s largest importers and exporters
- The agreement will deliver a minimum purchase commitment of A$4.4 million in the first year, but all parties are targeting further growth
- Despite the news, company shares are down 4.35 per cent, trading for 77 cents each
Aeris Environmental (AEI) has struck a strategic alliance with a pair of Chinese businesses, the Shanghai Taitrust Industrial Group and Shanxi Tond Chemical Stock.
Under the partnership, Aeris will rapidly scale its key products; surface disinfectants and sanitisers.
The agreements with these leading businesses will deliver a minimum purchase commitment of 20 million RMB (approximately A$4.4 million) in the first year. However, the consortia is targeting further social and financial growth beyond the first year.
The alliance is set to expand Aeris’ presence in the Chinese market, which is one of the world’s largest importers and exporters.
“The broadening of the company’s footprint in China and the delivery of more efficient production in the domestic market will enable Aeris to scale rapidly, and become a supplier to government, industrial, commercial and residential customers,” Aeris Non-Executive Chairman Maurie Stang said.
Throughout the year, Aeris has made a name for itself as a trusted supplier of disinfectants during the COVID-19 pandemic. Its Aeris Active product has received global recognition within Australia, the U.K., Singapore, and China.
“Utilising the Group’s elite team with Aeris’ leading technology and integrated solutions as a core competence, Taitrust will co-operate with Aeris to build what we believe will be a leading business in China’s significant infection control market,” Taitrust Executive Director Li Bin said.
The parties will utilise Taitrust’s large network of customers and significant relationships in the domestic Chinese market. All companies will also seek technical collaboration with some of China’s leading technical and research institutes.
Company shares are down 4.35 per cent and are trading for 77 cents each at 11:29 am AEST.
