Torotrak plc announces the signing of a development licence, rights to a full manufacturing licence, and an exclusivity option agreement with Carraro S.p.A. of Italy to enable them to exploit Torotrak’s Infinitely Variable Transmission (“IVT”) technology.
Carraro has purchased the non-exclusive right to develop and manufacture the IVT technology for Carraro’s own use and for third party use in medium-sized off-highway (agriculture and construction) and on-highway (bus and truck) applications.
Torotrak will receive in excess of Euro 1.2 million in exclusivity and licence payments over the next two years, plus subsequent royalties. The royalty rates secured through this licence meet our target for this sector.
Dick Elsy, Chief Executive, said
“For Torotrak this is much more than the addition of a new licensee. The series of agreements that we have signed with this new partner represent a joint commitment to take IVT to production. This is the first success in our strategy to broaden our product and market portfolio by targeting the high-volume, medium-sized sector of the off-highway industry.”
Notes:
Torotrak plc
Torotrak is the world leader in the design and development of traction drive Infinitely Variable Transmission (IVT) systems with competitive benefits for the automotive and off-highway industries. In automotive, IVT offers significant improvements in fuel economy, performance and smoothness combined with innovative driving control features. In off-highway, IVT offers a cost effective and mechanically efficient technology that can be used across product ranges. Torotrak’s principal commercial strategy is to generate royalty income from high volume manufacture of IVT technology by our licensed customers.
