Scooter News  ADVERTISEMENT  Vmoto Expands Vmoto has a new MD as well it has just acquired 67% of a Chinese engine group.
Melbourne Herald Sun Two Major trends have combined in spectacular fashion for listed motor scooter company Vmoto.
The first is a rapidly growing popularity of fuel efficient motor scooters which are selling in record numbers in Australia and around the world
The second is the incredible price advantage that can be gained by manufacturing in China.
Last week the companies cofounder and new managing director Partick Davin announced it would buy 67% of Chinese scooter engine and assembly group Shanghai Haiya
The acquisition will be revenue positive from day one, with the engine factory alone churning out up to 2000 small four stroke engines a month for export.
As part of the deal, in which senior Chinese staff get the remaining 33 per cent stake, a new factory will be built in Nanjing.
“The total investment required for the engine assembly plant, scooter assembly plant, manufacturing licence, land and factory premises at Nanjing, are estimated at $2.39 million,” said Patrick.
Vmoto will contribute about 1.6 million of this over time – making the purchase one that would be difficult to replicate at double the price in Australia.
Vmoto will integrate its manufacturing facility with its Australia, New Zealand and US distribution arm Freedomotor. Vmoto shares hiked 6.9% to 15.5 c on this news.
published 5/06/2007 |