Wellington Drive Technologies' managing director Ross Green on the production floor of his North Shore business with model assemblers Angelina Naresh and Hemlata Mehta. Photo / Kenny Rodger
Shares in Wellington Drive Technologies powered ahead more 13 per cent after the company today announced a major deal, its second in a week.
The Auckland company said it had signed a memorandum of understanding (MOU) with Panasonic Refrigeration Devices Singapore (PRDS) for a contract to develop WDT's
Monsoon high efficiency motor and related software.
WDT said the contract was subject to commercial confidentiality, but the development contract would deliver "a good level of engineering income" for WDT.
"In addition, the commercial returns to Wellington from use of its proprietary technology in a market of this scale are expected to be substantial," the company said in a statement.
"The board and management believe this contract is amongst the most significant in terms of overall commercial potential obtained by the company to date."
On Thursday, WDT said it had received an order from its South Korean agents for a substantial number of motors for clean room fan filter units for Samsung.
Although it said it could not disclose the size of the order, WDT said it was significant and follow-up orders from South Korea were expected.
WDT shares today rose 5 cents to 44 cents. WDT motors will be used Panasonic compressors used in home appliances, such as fridges.
Panasonic is the second largest fridge manufacturer in the world, making around 18 compressors a year in four plants, with 11 million made at its Singapore plant.
The first stage of the project was announced in February and technical work had progressed according to plan since, WDT said.
Electric motor-driven compressors are in all home fridges and over 100 million are used in refrigeration compressors each year, making it, in aggregate, one of the largest markets for motors.
The compressors are large users of power and WDT says its efficient motors can cut energy bills by 40 per cent.
WDT's current contract with Panasonic, scheduled for completion during the second quarter of 2008, will deliver Wellington equipment to production-ready standards for full testing and evaluation by Panasonic.
"If the evaluation is successful, as is expected based on the results so far, commercial arrangements for the introduction of the new system to production will be negotiated."
Commercial production is expected late next year.
- NZPA
