1st Nov 2005 07:00
Turbo Genset Inc.01 November 2005 1st November 2005 Agreement for the Design and Manufacture of High Speed Motor and Variable Frequency Drive Electronics Turbo Genset has entered into a binding Memorandum of Understanding with a majorinternational Capital Equipment Manufacturer, with manufacturing plants in NorthAmerica, Europe and China, for the design and manufacture of a range ofintegrated high speed motor and variable frequency drive systems in the sizerange of 200kW to 500kW. The equipment, intended for production release at the end of 2006, is planned toreplace sub-assemblies currently incorporated into the manufacturer's existingequipment design, improving overall system efficiency and performance. The agreement, which is subject to the satisfactory completion of the prototypetrials, includes a commitment for the purchase of 500 systems to meet theanticipated volume requirements in the initial two years of production. Thevalue of this initial commitment is expected to be in excess of USD $12,500,000,with deliveries commencing in 2007. The high speed motors, which are based on the same core technology as used inTurbo Genset's generator products, will be designed and manufactured at Heathrowusing Turbo Genset's design, production and test facilities. The drive electronics will be designed and manufactured at the Group's I-Powerdivision in Gateshead. Michael Hunt, CEO said "Turbo Genset has recently announced a number ofcontracts which have demonstrated the benefits of our strategy to build a morebalanced business, deploying our generator, motor and power electronicstechnology across a range of market sectors. This agreement represents a significant commercial achievement and isparticularly pleasing in that it uses the combined skills of both manufacturingdivisions and will deliver ongoing revenue to the Group." For further information, please contact: Gavin Anderson & Company (PR) Tel: +44 (0)20 7554 1400Ken Cronin/Michael Turner Turbo Genset Inc Tel: +44 (0)20 8564 4460Stephen Sadler, Chief Financial Officer Forward Looking statements This news release contains forward-looking statements. Forward-lookingstatements include statements concerning plans, objectives, goals, strategies,future events, or performance, and underlying assumptions and other statementsthat are other than statement of historical fact. These statements are subjectto uncertainties and risks including, but not limited to, the ability to meetongoing capital needs, product and service demand and acceptance, changes intechnology, economic conditions, the impact of competition, the need to protectproprietary rights to technology, government regulation, and other risks definedin this document and in statements filed from time to time with the applicablesecurities regulatory authorities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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