SciDev secures $2m US order for solids-liquid separation chemistry
SciDev has received a large commerial order for its solids-liquid separation chemistry from US-based Phoenix Process Equipment.
Chemical technology developer SciDev (ASX: SDV) has received a US$1.4 million (A$2.08 million) commercial order for its proprietary solids-liquid separation chemistry from Phoenix Process Equipment Company, the world’s largest integrated supplier of chemicals and dewatering equipment.
Kentucky-based Phoenix this week ordered a three-month supply of the chemistry, which will be manufactured by SciDev’s China-based partner Nuoer Group.
The product is expected to be onsite with Phoenix next month.
The commercial order follows a heads of agreement signed in August between SciDev and Phoenix, under which the latter qualified SciDev’s chemistry in the mineral, oil and gas processing spaces for use in waste dewatering and water recovery applications.
These applications are core to SciDev’s expertise in the development, production, supply and application of chemistry and process control technology.
Phoenix initially placed more than $120,000 in trial order sales for the chemistry in mid-2019, with volumes expected to grow over the term of the agreement.
US market goals
SciDev managing director and chief executive officer Lewis Utting said this latest commercial order will be key to the company being able to successfully penetrate the US market.
“This order demonstrates the growing opportunity for SciDev products and professional services in the large North American market,” he said.
“As we continue partnering with strong, reliable counterparties like Phoenix, opportunities will continue to emerge which are value accretive to all parties,” Mr Utting added.
SciDev also recently announced the strategic US$6 million acquisition of Highland Fluids Technology Inc, providing the company with immediate access to the US onshore oil and gas market.
December quarter results
At the end of January, SciDev posted positive December quarter results including a 77% growth in sales of $4.04 million, compared to the September 2019 quarter.
Cash receipts from customers also increased 47% to $2.26 million.
Highlights during the period included: the strategic $1.9 million acquisition of engineering and chemistry company ProSol Australia; the first delivery of MaxiFlox chemistry under a three-year deal with Iluka Resources (ASX: ILU); and the award of a design, build, install and operate contract for Yancoal’s powder flocculant plant in NSW’s Hunter Valley.
Last week, SciDev declared it had not experienced, nor is it expecting, any adverse supply chain implications as a result of the recent coronavirus outbreak.
It said its newly-acquired subsidiary ProSol currently holds a strong inventory and all SciDev customers are “well serviced with a significant buffer of inventory in the event of any stock delays out of China”.
In addition, it said Highland Fluid Technology has many existing supply points in North America and Europe and is confident it can mitigate any medium-term supply chain risk.