Australia, Perth
Advanced Engine
Components Limited (AEC) has received its first sales order from the
Weifang Weichai Peterson Gas Engine Co. Ltd joint venture. The order is
valued at $A1.2 million ($US900,000).
Weichai is one of the largest diesel engine manufacturers in China
with over 70% market share of the heavy duty engine market. AEC signed
a product development agreement in September 2004. Under the agreement
AEC will develop and supply components to adapt Weichai’s base heavy
duty diesel engines, using AEC’s Natural Gas Vehicle System ("NGVS"),
to run on Natural Gas.
The agreement originally applied to the application of AEC’s NGVS to
enable Weichai’s 9.7 litre engine to run on both NG and LPG. This
agreement has recently been amended to substitute the 9.7 litre LPG
engine with a 6.2 litre NG engine. The 6.2 litre engine is used in the
smaller city route buses which are far greater in number than the
larger buses using the 9.7 litre engine.
Weichai’s first purchase order, is for AEC NGVS kits for the 9.7 litre
engine and NGVS kits for the smaller 6.2 litre engine. In excess of
A$1.2 million revenue will be received by AEC upon delivery of the kits
to Weichai.
Receipt of the sales order coincides with the delivery, to Perth, of
Weichai’s base 9.7 litre engine and follows closely on the appointment
of David Wang as AEC’s General Manager – China. All design work is
complete and AEC will immediately install AEC’s NGVS on the base engine
and commence testing on AEC’s dynamometer.
Weichai require both the 6.2 litre and 9.7 litre NG engines to be
completed and available for the Beijing CIAEF 2005 (International Clean
Vehicles Exhibition) in late September 2005. Delivery, of the first of
the kits, is expected to commence soon after the Beijing Exhibition.
Information supplied by Advanced Engine Components
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