Value Microcaps Motherboard

[steeledge]

SEV announces China EV Joint Venture

http://finance.yahoo.com/news/sevcon-announces-electric-vehicle-joint-010214817.html

SOUTHBOROUGH, Mass., Feb. 4, 2014 (GLOBE NEWSWIRE) -- Sevcon, Inc. (SEV), a world leader in the design and manufacture of microprocessor-based controls for zero emission electric and hybrid vehicles, today announced that it has entered into a joint-venture agreement with a subsidiary of a Chinese Tier 1 automotive supplier, Risenbo Technology Co., Ltd, (Risenbo), based in Hubei Province, China. Operating as Sevcon [Hubei] New Energy Technology Company, Ltd., the new joint venture company will source from Sevcon and will market and sell existing and future Sevcon products for on-road electric and hybrid vehicle applications principally to Tier 1 automotive suppliers in China.

The joint-venture agreement has received the required approval of the government authorities in China. Under its terms, Sevcon and Risenbo each will own a 50 percent stake in the joint venture, which will be led by a Sevcon-nominated chair. Subject to the satisfaction of certain closing conditions, the joint-venture agreement is expected to become effective in the first quarter of calendar 2014.

"Partnering with Risenbo is a unique strategic opportunity for Sevcon to gain greater access to the world's largest electric and hybrid vehicle market," said Sevcon President and CEO Matt Boyle. "China has long been one of our most important growth regions, driven by increasing product demand in our traditional off-road, industrial, construction and mining markets. This joint venture will open the door for Sevcon to help China's Tier 1 automotive suppliers meet the country's fast-growing demand for zero emission scooters, motorcycles, automobiles and commercial vehicles, as well as hybrid electric vehicles. Working with Risenbo, a respected supplier to the automotive market in China, will enable us to forge new customer relationships in this crucially important geographic market far more rapidly and efficiently than we could on our own."

About Sevcon, Inc.

Sevcon is a world leader in the design and manufacture of microprocessor based controls for zero emission electric and hybrid vehicles. The controls are used to vary the speed and movement of vehicles, to integrate specialized functions and to optimize the energy consumption of the vehicle's power source. The Company supplies customers throughout the world from its operations in the USA, the U.K., France and the Asia Pacific region and through an international dealer network. Sevcon's customers are manufacturers of on and off-road vehicles including cars, trucks, buses, motorcycles, fork lift trucks, aerial lifts, mining vehicles, airport tractors, sweepers and other electrically powered vehicles. For more information visit www.sevcon.com.