A SOFTWARE company has signed a deal with a US business which will build it £18m sales and allow it to build a North East factory.
Dontyne Systems, which produces a range of applications and services for the power transmission industry, has signed two global agreements with Genesis Partners LP, a large US-based engineering technology group.
They have jointly developed a software platform, which will be marketed by both companies, to allow a new generation of gearing systems, patented by Genesis, to be designed and made by engineering companies worldwide.
Convoloid is a patented gearing technology which, by the way of design increases the torque capacity of an equivalent gearbox using standard gearing by up to 30%.
Historically the gearing industry has experienced marginal increases in torque capacity due to innovation of just 1% or 2%. The firm, launched in 2006 by Dr David Palmer and Dr Michael Fish, has sales offices in mainland Europe, USA, Japan, and Australia.
It has an annual turnover of just under £400,000 and employs four people and on the strength of its partnership with Genesis it is anticipating substantial growth. Dr Fish said: “A conservative estimate of the market Dontyne operates in stands at £150m. With our new global opportunities we plan to invest in a new market strategy, management structure and production facilities to achieve the company’s target which is to gain a 12% market share within four years.”
It also plans to set up a £1.5m facility initially creating 10 jobs manufacturing its own gearboxes and is looking at sites on Wearside and in Northumberland.
Dontyne claims Convoloid not only supports the production of the new gearing solutions but also analyses and improves the performance of current gearing technology in different engineering applications such as automotive, wind turbines, aerospace and marine power transmission systems.
David Dunn, chief executive of Sunderland Software City, said: “Dontyne Systems have established themselves as world leaders in the development of software applications for the power transmission industry.”