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Gateshead firm looks to double in size as it seeks £6 million shareholder funding

Zero-emission vehicle innovator Sevcon is looking to double its North East engineering team to 80 and recruit additional worldwide sales staff, as it seeks $10 million (£6 million) from shareholders to support its growth.

The Gateshead-based business, which is listed on the Nasdaq, has launched a rights issue saying some of the additional funds may be used for potential overseas acquisitions.

Matt Boyle, president and chief executive officer of the electric vehicle control manufacturer, says the global on and off- road hybrid and electric vehicle market is set to move into a new gear.

The $10 million rights issue follows a strong recent showing with revenues and profits rising sharply in the last few months.

Sevcon’s research and product development is conducted from its Team Valley headquarters, where it employs a team of 40 skilled hardware and software engineers.

Boyle said: “Realistically we are looking at doubling the size of the Gateshead engineering team to 80 staff to meet our projected demand and we also want to increase our global sales team from

“A number of significant new opportunities are currently presenting themselves and we are scaling the business to meet these growth projections.”

Earlier this year it signed a joint-venture with a Chinese automotive supplier Risenbo Technology. Operating as Sevcon New Energy Technology, the new company will sell Sevcon products to tier one automotive suppliers in China.

Boyle said: “The Chinese are far ahead of the rest of the world in adoption of low carbon vehicles. Last month the Chinese government said it would remove six million older polluting vehicles from the road this year, and replace them with lower polluting gas or pure electric cars.

“The desire of Far East governments to reduce the number and type of polluters isn’t limited to passenger cars, but includes buses and trucks, although rather than producing pure electric vehicles they are trying to promote hybrid technologies as well.”

“The far east in general and China especially, have reached an inflection point in the electric vehicle market.”

This was posted in Bdaily's Members' News section by Ellen Forster .