Maxwell Expands, Creates Jobs

Maxwell Technologies Inc. (MXWL - Analyst Report) is opening a new facility in Peoria, Illinois, its first ever outside San Diego. An investment of $26 million for this operational expansion will ensure the creation of 150 new jobs at the facility.

Maxwell's new facility is expected to come online late 2012. The company will develop and manufacture ultracapacitors, which is a small energy storage device used in numerous industries from renewable energy to transportation. Besides, Maxwell will also conduct research and development works at its facility in Peoria.

Maxwell's ultracapacitors are in demand for its ability to charge and discharge rapidly, which enables an efficient capture of regenerative braking energy and provides instant power for acceleration. Plus, the long operational life and low maintenance costs make these a very cost-effective energy storage solution for hybrid buses.

In September, the company singed an agreement with China’s Zhengzhou Yutong Bus Co. Ltd. (Yutong). Per the agreement Maxwell will offer ultracapacitor cells, which will be utilized by Yutong for energy storage and power delivery in its fuel-efficient, low-emission and diesel-electric hybrid buses.

In the second quarter 2011, revenue from ultracapacitors were $24.4 million reflecting a growth of 54.4% year over year. Contribution from ultracapacitors to total revenue during the quarter was 63.4%. Maxwell Technologies expects top-line sequential growth in the range of 5%–7% in the third quarter of 2011 and we expect the lion’s share to come from ultracapacitors.

The importance of ultracapacitors is on the rise owing to the government stimulus programs as well as more stringent automotive emissions legislation. We believe the decision to open the new facility is an appropriate step that would enable the company to meet the rising demand for ultracapacitors.

Maxwell Technologies currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. The company competes with Ultralife Corporation (ULBI - Snapshot Report), Anaren Inc.(ANEN - Snapshot Report) and IEC Electronics Corporation (IEC - Snapshot Report).

San Diego, Californiabased Maxwell Technologies develops, manufactures and markets energy storage and power delivery products for transportation, industrial telecommunications and other applications, and microelectronic products for space and satellite applications.