Smartcool steps into Asia-Pacific with new distribution agreement
Smartcool Systems Inc. has signed a major distribution agreement with Tegma Asia Pte Ltd., giving this corporation the right to sell Smartcool's energy efficiency retrofit technology across select Asia-Pacific markets. The agreement is for a 5-year term with a required purchase minimum of $9 million over the duration of the contract with 1.2 million being in 2010. Tegma now holds exclusive distribution rights for Smartcool's ESM and ECO within the following territories: Hong Kong, Macau, Singapore, Malaysia, Guam, Saipan, Laos, Cambodia, Myanmar, Vietnam, Taiwan, Thailand, Indonesia and the Philippines.
“This agreement is a significant milestone for Smartcool as it moves us closer towards our goal of providing our energy efficiency solutions on a truly global scale,” said George Burnes, president and CEO of Smartcool. “We are looking forward to working with such a strong regional partner in an area with a very significant market for energy efficiency products.”
Smartcool says relatively high electrical rates and a hot, humid climate make these Asia-Pacific countries an ideal market for the company’s energy efficiency technology for air conditioning and refrigeration systems. In addition to these clear advantages, Smartcool says its new relationship will have the added benefit of access to the existing customer base of Tegma Asia's parent company, OMG Asia Pte Ltd., an integrated retail marketing service company.
Bob Mebreur, CEO of OMG Asia, is enthusiastic about the potential for matching Smartcool's products with OMG's existing customers. “We estimate that the market for the ESM and ECO within our present customer base is $30 million within the exclusive territories under contract. This gives us a solid platform from which to launch Smartcool's products into the highly lucrative Asian markets. Further expansion to other verticals, such as the Telecom sector where Smartcool has already established successful roll-outs will also significantly enhance these values in the Asia-Pacific region.”
May 11, 2010 By Newswire
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