Sevcon Announces Electric Vehicle Joint Venture in China
SOUTHBOROUGH, Mass., Feb. 4, 2014 (GLOBE NEWSWIRE) -- Sevcon, Inc. (Nasdaq:SEV), a world leader in the design and manufacture of microprocessor-based controls for zero emission electric and hybrid vehicles, today announced that it has entered into a joint-venture agreement with a subsidiary of a Chinese Tier 1 automotive supplier, Risenbo Technology Co., Ltd, (Risenbo), based in Hubei Province, China. Operating as Sevcon [Hubei] New Energy Technology Company, Ltd., the new joint venture company will source from Sevcon and will market and sell existing and future Sevcon products for on-road electric and hybrid vehicle applications principally to Tier 1 automotive suppliers in China.
The joint-venture agreement has received the required approval of the government authorities in China. Under its terms, Sevcon and Risenbo each will own a 50 percent stake in the joint venture, which will be led by a Sevcon-nominated chair. Subject to the satisfaction of certain closing conditions, the joint-venture agreement is expected to become effective in the first quarter of calendar 2014.
"Partnering with Risenbo is a unique strategic opportunity for Sevcon to gain greater access to the world's largest electric and hybrid vehicle market," said Sevcon President and CEO Matt Boyle. "China has long been one of our most important growth regions, driven by increasing product demand in our traditional off-road, industrial, construction and mining markets. This joint venture will open the door for Sevcon to help China's Tier 1 automotive suppliers meet the country's fast-growing demand for zero emission scooters, motorcycles, automobiles and commercial vehicles, as well as hybrid electric vehicles. Working with Risenbo, a respected supplier to the automotive market in China, will enable us to forge new customer relationships in this crucially important geographic market far more rapidly and efficiently than we could on our own."
About Sevcon, Inc.
Sevcon is a world leader in the design and manufacture of microprocessor based controls for zero emission electric and hybrid vehicles. The controls are used to vary the speed and movement of vehicles, to integrate specialized functions and to optimize the energy consumption of the vehicle's power source. The Company supplies customers throughout the world from its operations in the USA, the U.K., France and the Asia Pacific region and through an international dealer network. Sevcon's customers are manufacturers of on and off-road vehicles including cars, trucks, buses, motorcycles, fork lift trucks, aerial lifts, mining vehicles, airport tractors, sweepers and other electrically powered vehicles. For more information visit www.sevcon.com.
Statements in this release about Sevcon's joint venture with Risenbo are forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those we anticipate. In particular: global demand for electric vehicles may not grow as much as we expect; our customers' products may not be as successful as those of other entrants in the electric vehicle market who are supplied by our competitors; and we are dependent on a few key suppliers and subcontractors for most components, sub-assemblies and finished products, and we may not be able to establish alternative sources of supply in time if supplies are interrupted. Please see the Company's most recent forms 10-K and 10-Q on file with the SEC for further information regarding Sevcon's risk factors.
CONTACT: David Calusdian Sharon Merrill Associates 1 (617) 542 5300 SEV@InvestorRelations.com Matt Boyle President and CEO 1 (508) 281 5503 matt.boyle@Sevcon.com