Resumption of Production

RedFlow Limited (ASX: RFX) is resuming production of both its zinc-bromine battery modules and energy storage systems this week at its Seventeen Mile Rocks factory. Operations were previously suspended on January 13 as a result of flood waters entering the premises.

Some inventory will need re-manufacturing, and replacement raw materials and components have been ordered from suppliers. The timing of individual shipments and some product development phases will be deferred in the near term.

However, the medium and longer term impact on RedFlow’s delivery and product development schedule is likely to be minimal.

Phil Hutchings, CEO of RedFlow said: “The re-start of operations has been achieved earlier than we expected and is a tribute to our staff and contractors. Virtually all of our key production machinery is back in operation and we will progressively ramp up to full production rates. The financial impact is currently assessed at approximately $350,000 plus three weeks of lost production while operations are restored.”

RedFlow installations of energy storage systems are ongoing in Victoria as the company continues to fulfil its $1 million contract with Energy Safe Victoria.

Additionally, the company shipped a zinc-bromine battery module last week for its inaugural participation at Mobile World Congress 2011 in Barcelona, February 14-17.

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