Key Highlights

  • Sprintex (ASX: SIX) has entered a Co-Development Agreement with Chinese industrial equipment specialist Bosiwei to develop sub-3-tonne MVR systems.
  • The initial target is a retrofit project at Yufeng Group, involving replacement of legacy 110kW Roots blowers with Sprintex’s 30kW MVR compressor technology.
  • Successful validation could lead to a long-term Supply agreement and exclusive matching qualification status for Bosiwei in China.
  • The agreement provides Sprintex with a pathway into China’s industrial evaporation market while retaining ownership of its core compressor intellectual property.

Sprintex Limited (ASX: SIX) has entered the Chinese industrial Mechanical Vapor Recompression (MVR) market through a Co-Development Agreement with Jiangsu Bosiwei Chemical Equipment Engineering Co., Ltd. The Partnership is focused on developing sub-3-tonne MVR systems for industrial applications, with the initial project targeting an energy-efficiency retrofit for Hebei Yufeng Industrial Group.

Under the arrangement, Sprintex will manufacture and supply its high-efficiency MVR compressors, while Bosiwei will manage system integration, engineering design, piping, PLC software configuration and site deployment. The structure enables Sprintex to concentrate on its compressor technology while using Bosiwei’s established engineering capabilities and customer relationships in China.

Yufeng Retrofit Provides Initial Commercial Test

The first project under the agreement is aimed at Yufeng Group, a Chinese agricultural and biotechnology company involved in large-scale corn processing. The company processes approximately 6 million to 8 million tonnes of corn annually across facilities in Hebei, Henan and Inner Mongolia.

The proposed retrofit will use Sprintex’s 30kW high-efficiency MVR compressor to replace existing 110kW Roots blowers used in evaporation and concentration processes. The project is intended to reduce specific energy consumption and operating requirements while supporting industrial energy-efficiency and decarbonisation objectives.

Successful testing and project acceptance would provide a reference installation for Bosiwei’s broader MVR pipeline. The companies have established a two-stage commercial framework, beginning with co-development and site testing before potentially moving into a separate long-term Supply Agreement.

China MVR Market Creates Expansion Pathway

Sprintex’s announcement identifies China as the largest individual market for MVR deployment, with more than 2,600 active industrial installations across sectors including chemical processing, pharmaceuticals and food production.

The Asia-Pacific region is estimated to account for between 41% and 45% of the global MVR market. The company also cites increasing adoption in food and agricultural processing, where MVR systems can recycle latent heat and reduce thermal energy requirements compared with conventional steam evaporation.

Bosiwei is targeting a potential annual market of approximately 500 sub-3-tonne MVR systems across wastewater treatment, chemicals, pharmaceuticals and food refining. For Sprintex, the proposed partnership provides a route to participate in this market through compressor supply rather than undertaking complete system integration itself.

Two-Stage Commercial Structure

The first stage covers development, evaluation and testing for the Yufeng project. Sprintex will supply 30kW MVR compressors at an agreed pilot price once specifications are confirmed.

If site testing is successful and Yufeng accepts the project, the second stage is intended to establish a long-term Supply Agreement. This agreement would cover recurring volumes and commercial pricing and provide Bosiwei with exclusive matching qualification status for sub-3-tonne MVR systems in China.

The agreement includes a six-month longstop period from execution for completion of the project and Supply Agreement, subject to any mutually agreed extension.

Intellectual Property Protections

The agreement preserves ownership of each party’s existing Background IP, with Sprintex retaining its rights to the underlying compressor technology. It also includes provisions restricting the use of Sprintex’s confidential information and technical assistance to develop or source alternative third-party compressors.

Bosiwei is additionally prohibited from reverse engineering Sprintex’s compressor technology, decompiling it or pursuing conflicting intellectual property registrations based on the technology.

Conclusion

The Bosiwei agreement represents a new application pathway for Sprintex’s MVR compressor platform in China’s industrial evaporation market. The immediate focus is the Yufeng Group retrofit, where the company’s 30kW compressor is being positioned as a replacement for 110kW Roots blower technology. The commercial significance of the agreement remains dependent on successful testing, project acceptance and execution of the proposed long-term Supply Agreement. If those stages are completed, the arrangement could provide Sprintex with a framework for recurring compressor supply through Bosiwei’s Chinese industrial network.