VEEM enters exclusive worldwide agreement with Sharrow Marine - TechInvest Magazine Online

High-technology marine propulsion and stabilisation systems manufacturer VEEM Limited (ASX: VEE) has executed agreements with Sharrow Engineering to partner together to design and then VEEM to exclusively manufacture and sell Sharrow propellers worldwide up to 5.0 metres in diameter for inboard motor vessels.

Highlights:

• Sharrow has developed an award-winning propeller design that has made a spectacular impact on the outboard motor market with outstanding improvements in fuel efficiency, noise, vibration and handling. VEEM will now take this technology to the larger inboard propellers.

• Sharrow chose VEEM as VEEM is the only manufacturer globally producing a range of high-performance, fully CNC machined propellers, thereby guaranteeing the accuracy of the propeller every time.

• The total addressable market for inboard propellers is estimated to be US$2.6 billion with the annual new build market estimated at US$338 million.

• Progressing with the project is subject to VEEM’s acceptance of the performance of the Sharrow design on the VEEM test vessel with the testing to be done in the coming weeks.

• Design work has already commenced and the first SHARROW by VEEM propellers are expected to be available in early 2024 with the full range rolled out by the end of 2024.

• Initial production will be at VEEM’s facility in Western Australia with the early adoption rates to determine potential demand and resultant capacity expansion opportunities.

The Sharrow propeller technology has revolutionised the outboard motor market, and we are honoured and very excited to have reached agreement with Sharrow to be the exclusive worldwide manufacturer and seller of the SHARROW by VEEM propellers for the inboard motor market. We look forward to demonstrating the significant benefits of this new product to our existing and future customers,” VEEM Chairman, Brad Miocevich, said.

What is the benefit of the Sharrow Propeller Design?

The Sharrow Propeller was invented by Gregory Sharrow in 2012 and is cited as the first major advancement in propeller technology since the 1830s. Its design has solved the most basic problem of rotary propulsion. Specifically, tip cavitation and vortices have been eliminated or significantly reduced, offering incredible performance gains over traditional propellers.

The Sharrow design has proven with outboards that it can deliver a staggering improvement in fuel efficiency and performance. The global boating industry is working towards a more sustainable and energy-efficient future. These designs are a major step in the right direction. This is alongside the personal benefits to the boat owner of increased comfort through reduced noise and vibration.

VEEM will be initially manufacturing the SHARROW by VEEM propellers at its plant in Western Australia which has capacity for 450 to 500 propellers a month. Initially these are expected to be taken up by demand from boat manufacturers and commercial operators.

If the adoption rates follow the same patterns as the Sharrow outboard motor propellers, then VEEM expects to be building increased capacity in the next few years.