Automotive supercharger manufacturer Sprintex (ASX: SIX) has confirmed it will establish a research, development and manufacturing subsidiary in China for clean energy and industrial applications.
Sprintex Energy Technology (Suzhou) will be housed in a new 1,500 square metre facility in Jiangsu Province and will become the company’s regional engineering centre and production base.
It will be staffed by a technical team with turbo-machinery, electric motor and car manufacturing experience and be capable of producing up to 50,000 high-speed electric compressor units per year.
Spinning at a minimum 100,000 revolutions per minute to compress and feed clean air or gases, the units can be used as electric superchargers in mild hybrid vehicles; as air compressors in hydrogen fuel cell systems for transportation and distributed energy; and as high-efficiency air and gas compressors.
They have experienced rapid growth in demand from end-users in clean emission transportation, clean energy and industrial applications.
The new subsidiary has been granted a number of subsidies from the Chinese Government for its high-tech operations and clean energy profile.
These include three years free rent subsidised by the local government; additional long term project grant incentives; and local tax exemptions of up to 80%.
Sprintex managing director Jay Upton said the production hub would increase the company’s exposure to overseas markets.
“The establishment of Sprintex China opens significant opportunities for [us] as it expands our product range internationally,” he said.
“We have assembled a strong team and look forward to implementing our expansion strategies.”
He said Sprintex China had already received expressions of interest from targeted customers and potential corporate partners.
Sprintex is an automotive engineering, research, product development and manufacturing company, incorporated in 2003.
The company designs and manufactures superchargers for use in a wide variety of combustion engines.
It is currently focused on the development and commercialisation of a twin screw supercharger in the original equipment manufacturer (OEM) market and aftermarket in Australia, Asia, Africa, the Middle East and the US.