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Wellington Drive Technology is reaping the benefits of greater environmental awareness, the firm said yesterday as it announced a major US design order.
Wellington Drive, an electronic motor maker which is actually based in Auckland, has been commissioned to design the motor, electronics and software for an unnamed US company which it began working with last year.
Wellington Drive's electronic motors - used in products including refrigerators, ventilation and air-conditioning - are more expensive than conventional motors but can reduce weight by about three-quarters and electricity consumption to less than one-third, making them more environmentally friendly.
Chief executive Ross Green said the US order was a significant step forward.
"Nothing is ever certain," Green said. "It's not as though they've signed a take-or-pay contract for millions of units or anything like that but it's a really big step forward," Green said.
One reason the US customer was working with Wellington Drive was the anticipation of federal regulation on electricity savings from the product category concerned, Green said.
Pressure in the environmental debate was rising and the market had come to meet the company, he said.
The US company sold several million units a year, with Wellington Drive's motor system to be used in a premium product and later intended for all versions.
"The reason they're working with us is because our design is going to give them, they believe, a really big competitive advantage," Green said.
"So they certainly don't want it known that something new is coming out on the scene because what we're doing with them is really quite different to any other product on the market."
Commercial refrigeration motor sales were steady in Europe, Turkey and US, and had started in Mexico.
The result for the year ended June was not expected to be a surprise, Green said. "The brief that we've got is grow revenues and increase our market footprint. ... and we're making good progress towards those goals."
Half-year results showed revenue up 24 per cent to $4.1 million and net losses up 11.5 per cent at $2.9 million.
Wellington Drive's shares closed up 4c yesterday at 36c.
