Sevcon Reports First Success for Its China Joint Venture
SOUTHBOROUGH, Mass., Nov. 12, 2014 (GLOBE NEWSWIRE) -- Sevcon, Inc. (Nasdaq:SEV) reported that its Chinese JV, Sevcon (Hubei) New Energy Technology Company, entered into an agreement with a large Chinese manufacturer to design and supply controls for their range of motors used in passenger cars in China.
The contract, worth $2.2M in the first year, will utilize a variant of Sevcon Gen4 products being specifically designed for this application. Sevcon expects prototypes to be available in January 2015 and the start of production in the fourth quarter of this fiscal year.
"This is a good first step in China and we are very pleased with the progress being made there. We are working with a manufacturer who today supplies motors to a number of on-road vehicle manufacturers," said President and CEO Matt Boyle. "It is testament to the management of the JV that this project was secured less than six months after the JV started trading in China."
About Sevcon, Inc.
Sevcon is a world leader in the design and manufacture of 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 UK, 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 future financial results are forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those we anticipate. In particular: capital markets are cyclical and weakness in the Chinese economy may prevent us from realizing the anticipated benefits of this contract; our customers' products may not be as successful as those of other entrants in the electric vehicle market who are supplied by our competitors; we may not be able to attract and retain the level of high quality engineering staff that we need to develop the new and improved products we need to be successful; 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