Thanks Greasemonkey!

Dick,
That's right. At the time I thought I was being ripped off, I paid £300 for it (bought it at the same time as the lathe). It can manage at least 5hp, I think it might even do more. Luckily the lathe is about 3hp so I've connected the converter to a 13 amp socket. I set it to 2hp to run the pump.
I'm afraid I don't know a great deal about it other than what you have already spotted. I.e. its a converter rather than a an inverter, and its not a rotary type. What I can tell you is that there doesn't seem to be too much in the way of expensive component in it. I bet it could be made for a lot less than I paid for it. If you want to copy it you are more than welcome to study it. There is a transformer, a funny relay thing, some switches and a load of capacitors in the box that seems to be it.
I could bring it over if you want to have a look over it?