After spending almost $12 million to commercialise its Sprintex supercharger technology, Malaga-based Automotive Technology Group Ltd is preparing to ramp up production with a $US10 million capital raising and possible dual stock exchange listing.
After spending almost $12 million to commercialise its Sprintex supercharger technology, Malaga-based Automotive Technology Group Ltd is preparing to ramp up production with a $US10 million capital raising and possible dual stock exchange listing.
Acquiring the Sprintex technology from Advanced Engine Components Ltd in November 2003, the company has since developed a range of applications for the lower emissions, high-performance technology for motor vehicles and motor cycles.
With all research and development and manufacturing done from its 3,500 square metre Malaga factory, Automotive Technology Group expects to increase production capacity from its current 5,000 units per year to about 30,000 units by 2009.
And with the global market forecast to reach 1.8 million units a year by 2010, AET, which is one of only four companies worldwide to manufacture superchargers, expects to increase its market share to 10 per cent by 2010.
Backed by an experienced board, including chairman and Howarths Hong Kong founder Steve Apedaile, non-executive director and Hutchison Telephone founder Richard Siemens, and former AEC Ltd managing director Tony Hamilton, the company is looking to use its $US10 million private placement to finance its forecast growth.
Mr Apedaile told WA Business News he expects most, if not all, of the funds to come from overseas-based investors in Hong Kong, the US and UK.
Following that, the company will then progress towards its planned dual listing on the Australian Securities Exchange and a US-based exchange.
“We’re well advanced into our plan. We’re generating strong revenues and income, and moving towards our target forecast,” he said.
“We want to ensure we have the necessary capital in place.”
Offshoring its non-critical assembly work will be inevitable to remain cost competitive, Mr Apedaile said, with a second manufacturing facility expected to come online in 18 to 24 months’ time.
Another AET wholly-owned subsidiary, Ducati spare parts manufacturer Vee Two, also stands to benefit from the injection of capital.
The acquisition of Vee Two in 2005 made AET the only supplier of specialist Ducati parts for the entire range of Ducati motorcycles, from 1964 to its latest model.
As part of its strategy to integrate Sprintex and Vee Two products, the company has launched its custom-built Super Squalo motorcycle, which made its worldwide debut at the Isle of Man TT a fortnight ago.
Comprised of the Sprintex supercharger and Vee Two performance parts, the Super Squalo is based on a Ducati 999S engine and chassis, and at 203 brake horsepower is the world’s most powerful road bike.
Only 99 will be built, with each retailing at $75,000.
“We’re hoping to revive the motorcycle industry and we’re well on the way to that,” managing director Tony Hamilton said.
