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AEC Expands Asian Alliances

August 10, 2005

Australia, Perth

Advanced Engine Components Limited (AEC) has expanded its alliances in the Asian region with the signing of Memoranda of Understanding (MOU) with Advanced Fuels Technology Pty Ltd (Advanced Fuels) and Automotive Corporation of Pakistan (ACP). AEC’s Beijing based division, has also signed a technical agreement with FAW Dalian Diesel Engine Company Limited (Dalian) to develop a Euro 3 emission, 3.2 litre, natural gas engine. The engine is for use in small buses and light duty trucks.

Advanced Fuels is an Australian based company with over 28 years experience supplying alternative fuels engine technology, training and equipment to projects in Australia and most Asian regions. AEC and Advanced Fuels manufacture complementary equipment for natural gas engines using proprietary technology. The MOU provides the opportunity for both AEC and Advanced Fuels to market and utilise the other party’s products globally.

The benefits to AEC include the opportunity for AEC’s designed and patented products, including injectors, regulators, engine control units and ignition coils, to be used in Advanced Fuels vehicle conversion programs throughout Asia and Australia. In addition, Advanced Fuels has established markets and business contacts throughout Asia. The MOU provides for Advanced Fuels to market and distribute AEC (First Auto Works (FAW) and Weifang Weichai Peterson Gas Engine Co Ltd) developed NG engines together with AEC developed NG conversion systems, throughout Indonesia, Thailand, Malaysia, Myanmar and Singapore.

ACP imports and distributes various international vehicles, including FAW vehicles, into Pakistan, together with the manufacture, fabrication and complete after sales services for specialised vehicles. The Development and Marketing MOU provides for ACP’s design, manufacture, marketing and after market support of NG powered trucks and buses in Pakistan using AEC (FAW) NG engines, technicians and expertise.

The Dalian/AEC technical agreement is a further extension of the FAW/AEC cooperation agreement signed in November 2003. Planning and mapping of the 3.2 litre NG engine has commenced with a project completion date of 30 August 2005. The tight timeline has been set by Dalian to meet the increasing demand for NG vehicles, of all sizes, throughout China and the Asian region. Dalian is one of China’s largest diesel engine manufacturers producing in excess of 100,000 diesel engines per year.

Information supplied by AEC.

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