Wellington Drive shares soar 24% on distribution deal with America's AO Smith

Shares of Wellington Drive Technologies soared 24% after the manufacturer of energy efficient motors for commercial fridges agreed a distribution with A.O. Smith, one of the biggest US electric motor makers.

Smith will sell Wellington Drive’s ECR One and EC85/95 refrigeration motors used in supermarket display cases and bottle coolers, co-branded with its own range, the Auckland-based company said in a statement today.

Wellington Drive is set to benefit from regulations in the US requiring such motors to help reduce energy consumption, chief executive Ross Green said.

The company’s commercial refrigeration motors are on a tear, with sales surging 105% last year and annual sales reaching more than 600,000 motors.

“Demand for Wellington products is increasing and shows no sign of slowing as the sector continues to switch over to high-efficiency motors, where our ECR range is the market leader,” Green said.

The shares climbed 1 cent to 9 cents and have tumbled 50% in the past 12 months.

Businesswire.co.nz

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