WDT provides Christmas gift to patient shareholders

By Campbell McIlroy

Friday 14th December 2001

Listed electric motor company Wellington Drive Technologies last night announced a "significant" deal with an unnamed European company.

WDT managing director Ross Green shrouded much of the deal in secrecy because of the potential impact the deal could have for the customer.

"They're using the motor to replace a motor from another supplier which has a lot of market power. If things go as we expect they will switch over to us completely."

Dr Green claimed a second reason to suppress the details was because the WDT motor would give the client a significant advantage and they wanted to spring it on the market as a surprise.

WDT will begin production of the motors early in the new year and will export them to Europe in time for the client's product launch in early July.

The company has the capacity to produce about 4000 units of the RF66 motor a month at its North Shore, Auckland, plant. But Dr Green said this would be increased if demand warranted it.

The motor is to be used in an air-extraction unit used in upper end domestic and light industrial applications.

Shareholders have been waiting a long time for WDT to deliver on its much-promised potential but Dr Green claimed this announcement confirmed in a concrete fashion the company was on the right track.

"This is not a trial. This is genuine stuff with the motor going straight into the end product."

But again Dr Green declined to discuss the value of the deal as the company was working on integrating WDT motors into another two products with the company, and was aware of a third project. "Even the minimum size is very significant. We wouldn't be announcing it if it wasn't significant. By the middle of next year it could become quite meaningful."

At the company's annual meeting Dr Green said a number of deals were at an advanced stage.

He said from the customers' point of view that this technology had been in development for a decade, and that the company could point to a history of getting things right as well as getting a few things wrong, was a positive.

He said 2002 promised to be a very interesting year for WDT.

Disclosure: Campbell McIlroy owns shares in WDT

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