WDT looks to capitalise on power crisis

Friday 2nd March 2001

By Campbell McIlroy

Electric motor developer Wellington Drive Technologies (WDT) is poised to reap benefits from the US power crisis, director Ross Green said yesterday.

The company listed on the main board of the NZSE this week and its interim result showed it almost doubled its half-year loss.

Dr Green said about half the loss of $858,000 before tax was due to increased marketing and sales activity over the past six months. The company managed a meagre $230,000 of operating revenue for the period.

WDT is gearing up for the Domotechnica 2001 trade fair in Cologne from March 7-10 which has been the focus for its marketing activities.

But the US power crisis had also provided timely marketing assistance to the company.

Dr Green said the company's RF200 motor, used for air-moving applications, used up to a sixth of the energy of comparable motors.

The US Department of Energy said electric motors accounted for 50% of electricity use in the US.

Dr Green said with the northern summer approaching and the reliance of places like California on air-conditioning, there was an opportunity to capitalise on the power crisis.

A number of US clients had taken delivery of samples ahead of schedule, Dr Green said.

Initial reports from Underwriters' Laboratories on the RF66 and RF200 motors had been encouraging and helped marketing efforts, he said.

The company will be launching its two core motors at Domotechnica and had already identified key customers for negotiations at the fair.

WDT shares, which listed at 81c on the main board on Wednesday, were down 5c at 75c on Thursday.

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