Agreement bears fruit for Wellington Drive

By Phil Boeyen, ShareChat Business News Editor

Tuesday 26th March 2002

Wellington Drive Technologies (NZSE: WDT) has moved a step closer to taking on the competition in the United States after securing a development programme order for its electric motors.

The order is the result of a memorandum of understanding which the company signed earlier this year with a leading American electrical products company.

WDT has not disclosed the name of its US partner and due to commercial reasons is not revealing the size of the latest order nor the end-customer's name.

However MD Ross Green confirms it is a US domestic appliance manufacturer and admits the deal has "good upside potential". He says the order covers initial development of motors similar to WDT's standard RF66 motor.

"The new motor has higher power output than the RF66, and several other modifications, so that it can be used as a drop in replacement for a competitor's product.

"What's more, by having our motors "drop in ready" we will be well positioned to achieve a share of similar applications elsewhere in what is a large worldwide market."

Mr Green says the order is a further indication that WDT's motor technology is gaining recognition.

"We've focused on premium segments of the air moving market, and this order helps to demonstrate that we make commercial sense in that area."

Wellington Drive's motors are made from specialised plastics, permanent magnets and electronics. The company says its products offer a number of advantages over conventional motors, including lower noise output, a longer lifespan and better energy efficiency.

Mr Green says while it was good to sign the memorandum of understanding earlier this year it is "even better to see that agreement quickly resulting in a firm order."

Wellington Drive recently announced a placement of 6 million shares at 25 cents to raise $1.5 million to help with further marketing and sales costs.

Comments from our readers

No comments yet