Infection and contamination control specialist Tristel (LSE: TSTL) broadened its international reach with two new agreements in the US, where it licensed its proprietary chlorine dioxide chemistry to bleach manufacturer Clorox, and in China, establishing a joint venture to tap into the US$835 million disinfectant market.
Oakland-based S&P 500 consumer goods manufacturer and marketer Clorox markets its products in more than 100 countries, enjoying annual sales in excess of US$5 billion, the company said in the statement.
Tristel simultaneously announced that its wholly-owned Stella Performance had established a subsidiary in Shanghai called Shanghai Stella Medical Equipment (SSM) to launch the Stella Endoscope Decontamination System into the Chinese market. SSM is currently in the process of obtaining regulatory approval for Tristel’s disinfectant products.
The newly established Chinese subsidiary has been able to secure its first distribution deal in the country, appointing Hangzhou Medicine & Medical Devices as its distributor in the Zhejiang Province. The company committed to purchasing at least 240 Stella units valued at £440,000 over the next three years.
"The establishment of a presence in both the Americas and Chinese markets is an enormous strategic advance for Tristel. To partner our technology as we have in the Americas market is also the finest endorsement of our chlorine dioxide chemistry. In the course of the past twelve months we have laid the foundations for future growth in the world's largest infection control markets - Russia, China, North and South America, whilst continuing to enjoy strong sales growth for all of our products in our existing markets,” said Tristel Chief Executive Paul Swinney.
Tristel said it had experienced strong trading since the start of the new financial year in July, while preliminary results for last year were in line with expectations.
The company climbed almost 5% on the news today.