Tanfield's US sale plan is 'good news'

Mar 11 2010 by Peter McCusker, The Journal

THE founder of North East stock market-listed company Tanfield says plans to sell its electric vehicle making business to its US partners is good news for the region.

Washington-based Tanfield said it has been approached by its American partner with an offer to buy Smith Electric Vehicles for £37m.

With the recent rush for low pollution transport Tanfield has grown SEV since paying £3m in 2004 for the firm founded in Gateshead in 1920 by the owners of Newcastle-based Ringtons Tea.

Last night Roy Stanley, Tanfield founder and non-executive chairman of SEV’s US business, said it was a move which would secure the future of SEV in the North East as well as creating further regional jobs.

He believes the deal, which would see SEV become a US-based company, will allow it to access funds for growth and development from the US Government.

“This is good news for the region. It will allow us to grow at a greater speed and create more jobs in the North East,” he said.

“We will be able to increase our production capacity and increase our investment in the development of commercial electric vehicles.”

Tanfield operates SEV and its main Powered Access division, which makes “cherry pickers”, from its Washington headquarters where it employs over 200 staff.

It has also created a division of SEV in Kansas employing around 100 people - known as Smith Electric Vehicle US (SEVUS) - in which it has a 49% stake . The majority 51% is owned by its American partners headed by its CEO Bryan Hansel.