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(Alliance News) - Symphony Environmental Technologies PLC on Monday said it plans to expand global product sales through a 10-year distribution agreement with Meditechs Global Co Ltd.
Shares in Symphony were trading up 16% at 26.16 pence each in London on Monday morning.
Hong Kong-based Meditech is an investor with significant stakes in Asia Health Services Ltd - an authorised distributor of the Sinopharm vaccine - and disposable gloves and personal protective equipment makers Meditech Gloves in Malaysia and Nacosa Yiwu Ruijia Trade Co in China.
Plastic and rubber product specialist Symphony plans to use Meditech's established network of manufacturers and commercial end-users to sell its biodegradable and antimicrobial plastic additivities, known as d2w and d2p respectively.
Meditech is now an authorised distributor of Symphony's d2w, d2p and masterbatch products in China, the company said.
Further exclusivity could be granted to Meditech if it meets a minimum purchase level, Symphony added.
Under an initial 5-year manufacturing agreement, Meditech plans to purchase trial quantities of the company's products to create prototype gloves for potential certification in the EU and the US, the company noted.
Annually, the plastics business said it expects Meditech to produce over 100 million gloves incorporating its d2p and d2w additives.
In turn, Symphony has the right to distribute Meditech's gloves that incorporate its technology, under the terms of a 3-year marketing agreement.
"These agreements will provide Symphony with a much stronger presence in the Far East and will give us a secure supply of gloves made with our antimicrobial and/or biodegradable technology for our growing international trade in gloves," said Symphony's chief executive Michael Laurier.
Within six months, Meditech plans to acquire between 2.5% and 20% of Symphony's total issued share capital. The shares can be bought in the open market, by private treaty, or at Symphony's discretion, via the issue of new shares at no less than 35p each.
"We welcome Meditech's agreement to invest in Symphony so that our commercial and corporate interests are more closely aligned," Laurier added.
By Scarlett Butler; scarlettbutler@alliancenews.com
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