Serstech has terminated the distribution agreement with the partner International Outsourcing Services Pte Ltd (IOS). The total value of delivered products and services so far to Indonesia is 30 MSEK, with the latest shipment in August 2017. By terminating the distribution agreement, the initial order, valued at 67 MSEK and received in May 2016, is also terminated.The termination will not have an impact on earlier reported results, but since full payment not have been recieved, there is a risk of a bad debt amounting to 2 MSEK which will be accounted for in the third quarter. Serstech and its advisors are considering the available legal options due to the inability of IOS to fulfill its obligations and take deliveries as defined in the purchase order.
Serstech renews its position in the Indonesian market and has appointed Wellcrown International Resources as new distribution partner for Indonesia. Wellcrown has extensive experience from the region and local representation in Indonesia and will focus on developing current and new business in the country. The new partner has established itself as a trusted supplier to both civilian and military customers throughout the region and will therefore have a greater reach than IOS, which focused only on civilian customers.
"Wellcrown meets our demands as we define a strategic key partner and we have a good relationship with them from other Asian markets. The potential in the Indonesian market is vast and given our successful track record there, we are confident that our new partner will be able bring the Indonesian business to a new level and strengthen the relationship with the end-customers", says Stefan Sandor, Serstech CEO.
"To succeed in our industry with professional and demanding customers, a distribution partner needs to be proactive, service-minded and technically skilled. Replacing IOS with Wellcrown will improve the service level for our end-customers in Indonesia and the likelihood of resumed deliveries to the country", continues Stefan Sandor.
For further information please contact: Stefan Sandor, CEO, Serstech AB phone +46 739 60 60 67 e-mail: ss@serstech.com or visit www.serstech.com
Serstech AB (Publ.) Is required to publish the information in this press release under the EU Market Abuse Regulation. The information was submitted for publication on August 20, 2018 at 08.30AM. About Serstech AB Serstech delivers solutions for chemical identifications and has customers across the world, mainly in the safety and security industry. Typical customers are customs, police authorities, security organisations and United Nations. The solutions and technology are however not limited to security applications and potentially any industry using chemicals of some kind could be addressed by Serstech's solution. Serstech is traded at Nasdaq First North and you find more information about the company at: www.serstech.com . Certified advisor to Serstech is Västra Hamnen Corporate Finance AB.
