Commercial Agreements

RNS Number : 7258I

Saietta Group PLC

06 December 2022

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 which forms part of UK law by virtue of the European Union (Withdrawal) Act 2018 ("MAR").

Saietta Group Plc

("Saietta", the "Company" or the "Group")

Commercial Agreements in Indian Light Duty Mobility Market

Further to its operating update on 18 October 2022, Saietta is delighted to announce substantial progress in its stated strategy for the Indian light duty mobility market. Saietta through its joint venture in India, Saietta VNA, has signed the first of a series of agreements with a global OEM which is one of the largest OEM's operating in the light duty mobility market in India. These agreements take the following form:

· Letter of Assignment (the "Assignment Letter")

The executed Letter of Assignment confirms the appointment of Saietta VNA for the product development and industrialisation of electric vehicle drive systems and associated electronics for the client and refers to a framework of terms and conditions for the performance of such services.

· Development Agreements (the "Development Agreements")

The Development Agreements represent approximately £3.2m of engineering design services revenue for Saietta VNA and the Light Duty Division of Saietta Group based at Silverstone UK.  The Development Agreements cover e-Drive products for a number of vehicle platforms featuring the Company's innovative AFT motor technology and associated power electronics.  Furthermore, the Development Agreements establish timelines and indicative volumes for these products with the pricing of the development services fees based on assumed minimum volumes of 80,000 units across the five years from the start of production scheduled from September 2023. 

Saietta VNA is now moving ahead to complete the industrial facilities and production lines in new premises in Gurgaon, Haryana, India utilising expertise and equipment from the Group's production site in Sunderland UK. Once the development work is substantially progressed Saietta VNA expects to receive its first formal purchase orders in H1 2023 which would formally contract the client to the commencement of commercial production targeted for September 2023.

Wicher (Vic) Kist, Chief Executive Officer, commented:

"In line with our recently announced strategy to focus on substantial customers with significant longer-term contract potential, we have now reached agreement with a global OEM to prepare for large scale commercial production at Saietta VNA's production facilities in India.

"To have reached this significant milestone in less than 18 months since listing on AIM is remarkable and we now have in place the pathway towards full-scale adoption of Saietta technology in one of the world's largest and fastest growing markets for light duty vehicle electrification.

"Combined with our progress with ConMet in the Heavy-Duty market in the U.S. and our marine and land systems progress in Europe, we now believe that the Group has a substantial pipeline of commercial activity across three continents.  Whilst demand and enquiry levels for Saietta's world class e-drive systems continues to grow the Group will maintain a dedicated focus on engineering excellence, ground-breaking IP, superb quality and timely delivery."

For any further enquiries, please contact:

Saietta Group Wicher (Vic) Kist, Chief Executive Officer Steven Harrison, Chief Financial Officer	via FTI
Canaccord Genuity (Nomad and Broker) Henry Fitzgerald-O'Connor / Patrick Dolaghan	0207 523 8000
FTI Consulting (Financial PR advisor) Ben Brewerton / Dhruv Soni	Tel: [phone] [e-mail]

About Saietta:

Saietta is an AIM-quoted, multi-national business which designs, engineers and manufactures Light Duty and Heavy Duty eDrive solutions for electric vehicles on land from scooters to buses (Vehicle categories L, M, N and T) as well as marine applications ( www.saietta.com ).

Saietta has engineered breakthrough electric motor technology including proprietary AFT (Axial Flux Technology) and RFT (Radial Flux Technology) which can be combined with in-house power electronics, powertrain controls, mechanical axles, and transmissions. The designs are unique and modular, delivering both high and low voltage electric drive solutions. Saietta's difference lies in its ability to conceive powertrain solutions tailored to deliver competitive advantage and its turnkey engineering services designed to fast-track electric vehicle manufacturers from concept to start of production.

To demonstrate the outstanding attributes of the AFT technology the company also founded its own next-generation marine propulsion division Propel ( www.propel.me ) which delivers solutions for boating in the electric era that support the transition to decarbonization and clean mobility on waterways.

 

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