Wellington Drive shares rocket up after announcing new order

By NZPA

Tuesday 14th August 2007

Shares in Wellington Drive Technology rocked up nearly 19% today after the small motor manufacturer said it had received a major order from a United States customer.

The shares shot up six cents to 38 cents.

The order from an undisclosed major US company was for the production engineering stages of what WDT said was "a major total integration programme".

The project work involves the design, development, manufacturing and supply of motors, electronics and software for a common appliance used in many households, offices and light commercial premises.

It said it could not name the customer or product for reasons of commercial confidentiality. However, the customer sold millions of units a year, comprising less than one third of the multi-million unit market for these appliances in the US.

Although WDT's new motor system would initially be released in the premium segment of the market, the design was intended to be suitable for all versions in the customer's overall product line.

WDT motors in these products reduced electricity consumption to less than one third of current levels, while providing additional features that aid assembly, improve industrial design and assist with manufacturing cost reduction.

WDT said the programme was being driven in part by pending US federal regulations, expected to mandate reduced electricity consumption for products of this type.

Development work has been going on for 18 months and agreement was reached this month on the major arrangements for production of the new product.

As well, WDT said new orders for its "ECR" electricity saving commercial refrigeration motors had recently been received from Federal Industries Inc, a major US manufacturer of food display and merchandising equipment.

WDT had also started delivery of commercial refrigeration motors to Mexico.

Order flows for WDT's commercial refrigeration motors in Europe, Turkey and the US had remained steady.

WDT shares were trading at 34 cents a year ago.

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