KUALA LUMPUR (March 1): VS Industry Bhd said it has signed an agreement with US-based Bissell International Trading Co BV, to manufacture home care products under the Bissell brand name, on a box-build basis.

According to VS Industry’s exchange filing today, the master supply agreement — signed between Bissell and VS Industry’s wholly-owned unit, Guardian Southeast Asia Pte Ltd — is for a three-year period beginning Feb 27, and may be automatically extended in one-year increments thereafter.

Under the agreement, Guardian will manufacture, assemble, package, label, test, and sell the products to Bissell.

However, the purchase of the products from Guardian is on a non-exclusive basis, which means Bissell is free to engage other suppliers to provide product substitutes, it said.

No contract volume or amount was specified today, as Bissell will provide Guardian, on a monthly basis, the rolling forecast containing volume estimates of the products for the following six-month period.

The actual contract sum shall then be determined based on purchase orders placed over the duration of the agreement, read the filing.

“The board does not expect the agreement to have any material impact on earnings for the current financial year ending July 31, 2019 (FY19).

“However, the agreement would contribute positively towards the earnings of VS Industry from FY20 onwards,” it added.

Based in Michigan, US, Bissell is a family-owned home care solutions company founded in 1876. It is known for supplying households and businesses globally with home care products such as vacuum cleaners, carpet-cleaning machines, cleaning formulas, as well as pet grooming products.

Shares in VS Industry closed 10 sen or 9.55% higher at RM1.09 — its highest in 11 weeks — for a market capitalisation of RM1.97 billion. The counter saw a turnover of 78.29 million shares, making it the third most actively traded on the local bourse today.