Synchrony Gets Whopper of a Contract

The boys from Synchrony show off a magnetic bearing. CEO Victor Iannello (FRONT executive of year for 2009) in the suit>

Roanoke County-based Synchrony, Inc., which makes rotating machinery and power conversion systems, has received what could eventually be a $16 million an order from McQuay International for serial production of integrated drive trains to be used in high efficiency chillers.

McQuay will incorporate Synchrony's technology into its line of frictionless chillers. The chillers are designed for commercial and industrial buildings demanding high performance heating, ventilation, and air conditioning (HVAC) systems. They include sustainable buildings designed to meet requirements for LEED(R) Green Building Certification.

McQuay, part of Daikin Industries, is the world's second largest HVAC company, specializing in green HVAC systems. Synchrony's technology reduces energy use, oil disposal, and operating costs by replacing oil bearings, gears, and low speed induction motors with high-speed motors on magnetic bearings. This provides a dramatic improvement in the efficiency of the system, whether at full load or part load.

Synchrony has received a purchase order from McQuay for the delivery of 150 integrated drive trains that will be incorporated into McQuay's Magnitude chillers. These units represent the first portion of a Letter of Intent that McQuay provided to Synchrony earlier in 2009 with an expected total sales value of $16 million.

Under the terms of a previous agreement, Synchrony also has exclusive rights to develop new integrated drive trains for McQuay. This product launch is a significant step for Synchrony, which was the recent recipient of the prestigious R&D 100 award for its Fusion(R) magnetic bearing. Synchrony's technology is creating broad new opportunities for use in motors, generators, pumps, compressors, fans, and blowers in the HVAC, renewable energy, oil and gas, air separation, power generation, and defense markets.

"The market for our magnetic bearings and high-speed drive trains is rapidly expanding with increased industry attention on energy efficiency and the environmental sustainability," says Synchrony President and CEO Victor Iannello.

(From press release.)