SEM Drive AB signs a development agreement

SEM Drive AB signs a development agreement SEM Drive AB, a subsidiary of the listed Opcon Group, has signed a development contract with a manufacturer in the vehicle industry. Under the terms of the four-year agreement, which is worth around SEK 30 million, SEM Drive AB will develop a new sensor for vehicle applications. "We are very pleased to have reached this agreement with a world-leading manufacturer in the face of tough international competition. We can now prepare for increased production capacity," says Svein Valheim, Managing Director of SEM Drive AB. The agreement concerns the development of a new product in the form of a sensor. The first deliveries of prototypes for field tests will be made in early 2002. The assignment will lead to a production order and production will begin in 2003. At the start of 2002 SEM Drive will acquire Reac AB of Eskilstuna, Sweden, a developer and manufacturer of electrical devices. The acquisition means that SEM Drive AB has a complete product range to offer its customers and Reac's existing sales channels in Europe. "The acquisition of Reac opens up a new and fast expanding market for us. In Sweden alone this market is worth around SEK 300 million and we will be channelling increased resources here to win market shares," says Svein Valheim. SEM Drive AB develops and manufactures positioning devices at its site in Åmål, central Sweden. The products feature in petrol cap locks, cash dispensers, parking locks and positioners in automatic gearboxes. The profitability of the company, which has over 70 employees, has progressed very positively in recent SEM Drive AB is a member of the Opcon Group. Opcon companies focus on the development and manufacture of products that help to reduce emissions from different types of vehicle and other equipment such as lawnmowers. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/01/15/20041004BIT20500/wkr0001.pdf