AeroTwin Engine to be produced in New Zealand

AeroTwin Motors reports that it has sold production assets and licensed improvements to establish AeroTwin sport aircraft engine production in New Zealand. Aeromotors Ltd., a New Zealand company, organized by former AeroTwin engine consultant and inventor W.L. White, plans to produce AeroTwin engines and develop new engines.

White has arranged a combination of government and private funding, company officials said, noting AeroTwin has no ownership in Aeromotors.

“There is vastly more business assistance for manufacturing available in New Zealand,” said Dwaine Barnes, president of AeroTwin. “The regulatory and legal environment in the United States is not conducive for manufacturing aeronautical products. We determined that the transfer of production, while retaining exclusive sales agency rights for North America, was the best strategy to realize return on our investment.”

The license, royalty and sale agreement terminates the 2003 manufacturing license originally granted by Pearson Motor Company Ltd. and held by AeroTwin related to base AT972 technology licenses AeroTwin-financed improvements to Aeromotors in exchange for future royalties payable to AeroTwin for 10 years and transfers tooling and certain inventory for consideration, including $200,000 payable to AeroTwin as new engines are produced.

“We have retained finished engine inventory to continue business in North America while production in New Zealand is established,” Barnes said. “Launching a new engine in this economy is a challenge and we are responding by working with customers in both the sport aircraft and hovercraft markets on product partnerships to gather operating data and seed the market. Now that we are no longer responsible for production we can focus on these activities.”

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