18 Sep 2013

Wellington Drive eyes South America boost

6:58 am on 18 September 2013

Wellington Drive Technologies says it hopes a new partnership will let it expand manufacturing to Latin America, its largest export market.

The company, which makes energy-efficient motors, has formed a partnership with East West Manufacturing.

Wellington Drive's chief financial officer Howard Milliner says that will let the company move some of its manufacturing from China to East West's factory in Vietnam.

He says that will help to reduce costs and accelerate growth.

Mr Milliner says the partnership could also help Wellington Drive to expand its manufacturing and supply chains beyond Asia.

Mr Milliner says East West will purchase an 8.4% stake in Wellington Drive for $1.6 million.

East West also has the option to buy a further 3.7% stake in the next two years.

In August Wellington Drive posted its first ever operating profit of $13,000 for the month of June.

But it's still forecasting an operating loss for the full year of less than $3 million, with an operating profit in 2014.