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Clean sweep: Envirosuite secures second partnership with Chinese enviro tech company

Environment
ASX:EVS      MCAP $65.30M
28 October 2019 23:15 (AEST)

Environmental management company Envirosuite has teamed up with Sailhero in a bid to expand its access to the Asian market.

The enviro tech company will provide Sailhero with environmental solutions to improve air quality and other utility projects.

Both parties have agreed to enter a strategic cooperation agreement, which allows Envirosuite to utilise its air quality software platform along with Sailhero’s existing equipment for larger-scale projects.

The partnership will extend Envirosuite’s reach into China, providing access to the country’s eighth-largest province, Hebei.

Hebei hosts over 75 million citizens and boasts a gross domestic product worth over half a million USD.

The partnership isn’t unprecedented; just last week, Envirosuite signed on with Beijing-based BHZQ, another enviro tech focussed on the water sector.

Envirosuite CEO Peter White said the new partnership perfectly complimented what the company was already offering.

“[It’s] significant that Sailhero, a company that has been a pioneer and the dominant market player in providing air quality monitoring equipment for over two decades, has decided to partner with Envirosuite to help extend their solutions in the identification of sources of pollution,” Peter explained.

“We are starting to see the potential for our business in the China market and now we have two top-level partners that have agreed to support our expansion with their enormous market reach,” he concluded.

At its core, the new agreement is part of Envirosuite’s larger strategy to advance its Chinese expansion plan. Although the terms don’t involve monetary exchange, there is potential for each party to act as a reseller for each other’s products.

Sailhero currently boasts a market cap equivalent to over A$57 million and its annual revenue sits at nearly A$28 million. The company specialises in creating technology to monitor a variety of systems and environments.

On the ASX, Envirosuite traded up this afternoon with a jump of 1.64 per cent. Shares in the company are currently selling for 31 cents apiece with an estimated market capital of A$128 million.

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