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Vmoto China plant targets $100m annual revenue |
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14-January-08 by Edited announcement
Perth-based scooter manufacturing
and distribution group Vmoto Ltd announced today an annual revenue target of
over $100 million a year by 2011 with the Stage 1 of the company's China plant
expected to be operationnal by mid year.
The Stage 1 layout will deliver
an initial output of 15,000 scooters and 20,000 engines.
Stages 2 and 3
are due to commence later this year and will provide an eventual capacity of a
combined total of 200,000 scooter and engine units per annum for export to its
global client base in more than 100 nations.
Full announcement
below:
An Australian company has commenced construction in China of a
sophisticated and advanced scooter assembly plant, targeting annual revenues of
over A$100 million a year by 2011 for ASX-listed Vmoto Limited (ASX code "VMT").
Vmoto announced today that work was underway in Nanjing, China, on Stage 1
of the 10,000 square metre plant which was expected to be operational by mid
year.
The Stage 1 layout will deliver Perth-based Vmoto - already a
successful global distributor of its own scooter brands and All Terrain Vehicles
(ATV) - a modern assembly plant in China with an initial output of 15,000
scooters and 20,000 engines.
Stages 2 and 3 are due to commence later this
year and will provide an eventual capacity of a combined total of 200,000
scooter and engine units per annum for export to its global client base in more
than 100 nations.
"This is a milestone for Vmoto as we are the only
Australian scooter manufacturer and are one of the few independent foreign owned
enterprises given approval to establish and operate such facilities in China,"
Vmoto's Managing Director, Mr Patrick Davin, said today.
"Critically,
Nanjing, near Shanghai, is one of the fastest growing commercial areas in China.
It has a highly mechanised container port only 10 minutes from the new assembly
plant and this, combined with our engine build quality and high level of
in-house expertise from ex-Honda- Sundiro engineers, provides significant export
and sales advantage," Mr Davin said.
"We anticipate achieving full production
by the end of 2010.
"On current pricing, that will generate annual revenue in
excess of A$100 million."
Pre-orders have already accounted for the entire
15,000 scooter run in the Nanjing plant's maiden start-up period.
"This is
without doubt the most significant milestone achieved by the Company to date,"
Mr Davin said.
"Having our own factory enables Vmoto to be totally
self-reliant in relation to future scooter requirements and to have a more
hands-on approach in developing our specialised scooter models moving forward.
"The Company also stands to reap significant margin advantages in
relation to our scooter purchasing costs which will aid long-term profitability
and competitiveness."
Vmoto acquired the three acre Nanjing site for
US$750,000 in September last year and will fund the Stage 1 construction
schedule internally.
When the plant is completed, Vmoto will be one of only
a handful of scooter manufactures worldwide which have their own manufacturing
and assembly capability. The Company has appointed the former General Manager of
Scooter Operations for Honda Sundiro in China, Mr Li Gang, to head the Nanjing
operations.
The site will also embrace by August, all of Vmoto's in-house
engine build and scooter assembly operations in China, currently operating from
two rented factories.
Stage 1 will employ about 130 people and comprise
three production lines capable of 1250 units per month over three different
model lines.
The construction start is the latest milestone for the
Australian scooter wholesaler and distributor which last year accelerated its
move towards becoming a fully vertically integrated international scooter group
with the acquisition of a 67% stake in Shanghai Haiya Power Manufacturing Co.
Ltd.
This delivered Vmoto majority ownership of Haiya Power's Shanghai
factory which produces between 1,000 and 2,000 high performance, environmentally
efficient, 4 stroke 50cc and 125cc engines per month, many exported to
Korea.
The Australian company had earlier acquired the global operations of
Vmoto Motorcycles, owner and distributor throughout Australia, New Zealand, and
U.A.E. of the class-leading Vmoto scooter brand and a range of ATVs.
It had
also acquired the Shanghai-based Freedomotor Company Limited, one of China's
largest independent distributors and exporters of scooters, motorcycles, ATVs
and hi-performance off-road karts. Freedomotor has distribution rights in more
than 50 countries across Europe, Australia, North America, South America and
South Africa.
Mr Davin said Vmoto remained on track to complete by the third
quarter of 2008, its final transition to a fully integrated international
scooter business - the consolidation of its entire wholesale distribution,
retail, marketing, manufacturing and Original Equipment Manufacturer OEM
operations, under one global brand.
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Latest News
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Quietest Fun on Two Wheels
Vmoto Emax review by Dale Clemons
I have just done a test ride on the new Vmoto E-max electric scooter and was left completely disappointed. disappointed that I had arranged to only have it for an hour. After all, it was only a scooter. What I had completely overlooked beforehand was how much fun it provided. The moment I left the dealership in complete silence I had the biggest smile, a regular feature over the following 60 minutes.
I will get to all the technical bits in a moment, firstly I just want to stress the sheer riding pleasure this scoot generates, an open-air pleasure in 3-D by being able to enjoy the sights, smells -- and now sounds.
Sure, there is no blipping the throttle at the stop lights, no throaty roar to attract the attention of those in the car next to you to make them jealous of what you are straddling, but the trade-off is peace in your helmet, no vibration through your arms and backside and the knowledge that you are making little impact on the environment.
Of course you can also thumb your nose at every petrol station you pass. Based on specifications, comparisons between electric and petrol power are a little difficult. The E-max has a 4000W high torque motor mounted inside the rim of the rear wheel. A similar scooter which falls into the same category in which riders only require a normal car licence, would most likely be powered by a 50cc motor producing a maximum of about 3.3Nm of torque. The advantage of electric is that the motor provides the same power and torque over the complete rev range.
Having ridden both, the E-max is no slouch. It can be ridden in three modes Eco, Normal and Max. The performance at each level, of course, is largely determined by the weight of the rider or riders. The maximum recommended load is 150kg. For this test, let's assume the rider is about 70kg. At least it was the last time i looked. Eco mode will get you along at a top speed of 40kmh and struggle up even the slightest bill, Max will runup to 65-70kmh and take most hills around the Bunbury suburbs with ease, Normal lies somewhere in between. Given that it only takes four to six hours to charge up and has a quoted range of 90km at 45kmh. Most riders, I suspect, would just stick with Max mode and enjoy the acceleration and easy-to achieve speed. The savings in fuel costs are obvious and if recharged using solar power it would be nothing but the real savings show up come service time. With no oil, no spark plugs, no valve clearances and no gearbox servicing costs are about a third of the petrol engined equivalent. Another little feature which at first appeared to be of novelty value was reverse. At the press of a button and twist of the throttle, the scooter backs up great for reversing up a slight incline out of a parking spot or if you headed up a sand track thinking it was a good idea and it wasn't.
Most people would be interested in how the E-max goes, but how it stops is pretty important too and in this area it is fourstar. Tried out in the Back Beach car park and put to the test in Victoria Street when a vehicle close in front hit the skids, the brakes were a confidence booster. Quirky in its quietness, easy on the environment, kind to the pocket the E-max is just a lot of fun on two wheels.
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“VMOTO GOES VIRGIN”
Sir Richard Branson met Vmoto Business Development Manager, Janelle Druvins 19th March 2010 to support “Strike A Cord For Cancer”.
The Oceanic Yacht set sail in Perth to raise money for the Charity and was a huge success.
Vmoto is proud to support Australian charities and was glad to accept tips from Virgin’s Business Mogul.
Janelle said “Richard was very inspiring with some fantastic Business advise. Vmoto has a similar Marketing angle & I look forward to approaching Virgin to arrange a cross promotion in the near future”
read more
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Vmoto Nanjing Manufacturing Facility - Stage 2 begins construction
Vmoto Limited is pleased to announce that it has commenced construction of Stage 2 of its manufacturing facility in Nanjing, China. Stage 2 comprises an additional 19,937 square metres of factory floor space which, when added to the existing Stage 1 factory commissioned in 2009, will provide Vmoto with a total combined factory floor space of 30,137 square metres.
Stage 2 comprises a 10,000 square metre dedicated electric scooter production facility which will accommodate production for the Vmoto Emax electric scooter alliance, together with a 5,961 square metre spare parts storage and distribution centre. In addition, a 5 floor dormitory and staff dining quarters, comprising 4,000 square metres, will be included in Stage 2.
Construction of Stage 2, which commenced this week, is expected to take approximately 280 days and will require an investment by Vmoto of an estimated A$4 million, which is expected to be financed via a combination of cash flow and bank credit facility. Upon completion, the Stage 1 and 2 facilities will provide the Company with the capacity to manufacture scooters, Scartt’s and other associated products, such as engines.
Read More...
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