Vmoto targets first China output in Oct

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 workshop is completed on time and budget.

The company, Australia's only scooter manufacturer, confirmed today the handover of the completed stage 1 of the 10,200 square metre assembly plant took place last week.

Combined land acquisition, bought in October last year, and stage 1 costs for the factory of $US1.95 million ($2.3 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" production cost reductions by consolidating production at one location.

Vmoto managing director Partick Davin said he expects the SCARTT sport UTV vehicles to be delivered to European markets by year-end.

The company last week reported a 38 per cent increase in revenue of $35.3 million for the 2008 financial year a net loss of $8.6 million.