Gateshead firm Sevcon set to sparkle

Feb 10 2010 by Peter McCusker, The Journal

THE North East-based president and chief executive officer of a US-listed company says that despite a tough 2009 its world-leading electric vehicle technology places it in a strong position to take advantage of the emerging low-carbon vehicle market.

In 1969, five years after it was established in Gateshead, Sevcon was bought by US-based Tech/Ops and opened an office in Boston followed by a listing on the US stock market in 1988.

While Boston is now the company’s head office, with 20 staff, the Gateshead base continues to be Sevcon’s main research and development facility employing 46 people.

The company is one of five global operators in the electric vehicle control technology market for the industrial market such as fork lift trucks.

With its technology now being applied to the low carbon, on-road vehicle market, boss Matt Boyle says it is well-placed for the future, despite seeing sales fall from $40m in 2008 to $20m in 2008.

Sevcon president and CEO Mr Boyle and vice-president, treasurer and chief financial officer Paul Farquhar work from the Team Valley office.

Mr Boyle said: “Although listed in the USA, we are very much a North East company with a global reach.

“Gateshead is the company’s engineering headquarters and the focal point for Sevcon’s technical design and product development activities.

“We’ve been at the cutting edge of the industry for over 40 years and the technical expertise we’ve built up in this time is invaluable.

“As interest in low-carbon technology extends from our traditional markets to on-road vehicles, bikes and scooters, the company is therefore in a strong position to meet any new demand that emerges.”

Sevcon controls act as the ‘brain’ of the vehicle system. Linking the battery to motorised functions, the control units are used to vary the speed and movement of electric vehicles, to integrate specialised functions and to optimise energy consumption.

Its controls are currently used in vehicles which include: fork lift trucks, aerial lifts, airport ground support vehicles, mining vehicles and electric bikes and there has been a growing demand for its products in the last two years as Governments try to cut pollution and use sustainable energy.

“There is still a lot of work to do but as a company with over 40 years experience we are in a competitive position to take advantage of these changes,” added Mr Boyle.

Last year Sevcon launched its most successful product to date, in the shape of the Gen4 AC range, which possesses greater power density in a smaller unit.

Mr Boyle said: “Sales fell from $40m to $20m between 2009 and 2008 as the industrial sector went into the doldrums, but in the last quarter of 2009 recorded sales of $6.3m brought a profit of $161,000.

He added: “Improved sales of our new vehicle control products, combined with the results of effective cost and cash management, enabled the company to record its first quarterly profit since the beginning of the severe economic decline in our worldwide markets in autumn 2008.

Sevcon employs 100 people worldwide with facilities in Wrexham, Paris, Tokyo and Seoul. Its customers include Toyota, Ford, Hyundai and Nissan.