China's demand for electricity and hybrid technology (MXWL 2Q05 conf call quotes)

Maxwell Technologies (ticker: MXWL) is the exclusive provider of high-tension capacitors for the Three Gorges Dam in China. Here are key quotes from management during its Q2 2005 earnings results conference call last week:

Maxwell President and CEO Rich Balanson

....If you go to Shinzen (editor: Shenzhen)....they....talk about zones....where the amount of electricity is on per day, how many hours per day. So in Zone 1 it never goes off, Zone 2 it's off for 4 or 5 hours, Zone 3 it's off for half a day, Zone 4 it goes off for a few days a week.

....that place is outgrowing its ability to distribute electricity.

....there's a huge demand in electrification of China going on....I suspect that we're going to see a fairly long-term strength in China like we've never seen....

Q&A between Bill Hyler and Richard Smith

Q: HM Energy Analyst Bill Hyler

....You've got to believe a country like that, given where oil prices are going, is going to have to take a much more aggressive stance toward using hybrid technology across automotive industrial applications, just to sustain their growth rate, given that they're so short energy.

A: Maxwell EVP Strategic Development Richard Smith

....the interesting thing about China is that most of their cars that they build are cars that are either licensed technology from Europe or North American automotive companies, maybe Japanese and Korean as well. So their infrastructure for building cars is emerging. Their desire to have efficient cars and hybrids and so on, is very high, as we would imagine.

(Quotes are from the CCBN StreetEvents transcript.)

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