VS Industry inks manufacturing deal with US-based Victory Innovations
19 Aug 2020
VS Industry Bhd has entered into a master supply agreement with US-based Victory Innovations Company Inc for the manufacture of cordless electrostatic sprayers on a box-build assembly basis via its wholly-owned subsidiary Guardian South East Asia Pte Ltd.
With the agreement, the group is responsible for the provision of end-to-end processes from production to assembly, testing, packaging, labelling and logistics fulfillment.
It revealed that the contract sum under this agreement shall be based on purchase orders placed over the period.
VS Industry’s managing director, Datuk S.Y. Gan commented that with the agreement it is delighted to play a role in to support Victory’s battle the spread of the ongoing Covid-19 pandemic
“We have to hit the ground running and work as fast as we can to roll out the products as we understand both the handheld and backpack sprayers are currently out of stock due to extreme demand brought about by Covid-19,” he said in a press release.
As the group has been selected as Victory’s first supplier in Southeast Asia, Gan stated that the on-going US-China trade dispute provided it the opportunity to establish the relationship, as VS has benefited from multinational companies from the US that are looking to shift or diversify their manufacturing base to the region.
He believes that the group’s ready capacity, strong technical capabilities, and proven track record has been the major contributor for securing Victory as the key customer and the group expects the agreement to contribute to its earning from its financial year ending July 31, 2021 onwards.
“Looking ahead, our business development team is kept busy pursuing opportunities from the trade diversion and continues to engage in active discussions with prospective customers,” said the managing director.
Overall, he noted that VS’ long-term outlook remains bright underpinned by its solid fundamentals, strong execution skills, recent addition of new key customer, and potential future contract win despite the ongoing pandemic.
Source: The Sun Daily