Perth-based Vmoto Ltd is targeting late October for in-house scooter production to start at its manufacturing plant in China, as stage one of the factory is completed on time and budget.
The company, Australia's only scooter manufacturer, said the handover of the completed stage 1 of the 10,200 square metre assembly plant took place at the end of August.
The combined cost of land acquisition and stage 1 of the factory, of $US1.9 million ($A2.3 million), have largely been met from Vmoto's cash flow.
Full commissioning of the new factory will enable production to more than triple from current capacity and is expected to provide significant cost reductions by consolidating production at one location, according to the company.
Vmoto managing director Partick Davin said he expected the company's scooters to be delivered to European markets by year's end.
"Vmoto has the genuine ability to provide world-class products to its global client base, which provides a greater opportunity for successfully delivering the vision of total vertical integration of the group," he said.
"To see how quickly this project has developed from a few architectural drawings to a fully fledged manufacturing plant is just incomprehensible in Australia or Europe.
"The project actually broke ground in December 2007 and handover took place in August, as planned."
Mr Davin said the scooters would be delivered at a fraction of the original price in mass production scale.
Meanwhile, the company has reported a 38 per cent increase in revenue of $35.3 million for the 2008 financial year and a net loss of $8.6 million.
The loss reflected the company's decision to write down the goodwill associated with its recent acquisitions, totalling $6.1 million.
© Business News 2018. You may share content using the tools provided but do not copy and redistribute.