REG - Saietta Group PLC - Commercial Agreements

SaiettaAnnouncement

06/12/2022 07:00

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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                                  via FTI

 Wicher (Vic) Kist, Chief Executive Officer

 Steven Harrison, Chief Financial Officer
 Canaccord Genuity (Nomad and Broker)           0207 523 8000

 Henry Fitzgerald-O'Connor / Patrick Dolaghan
 FTI Consulting (Financial PR advisor)          Tel: +44 (0) 20 3727 1000

 Ben Brewerton / Dhruv Soni                     saietta@fticonsulting.com

( )

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 (http://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 (http://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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