Western Australia, Perth
Australian based Advanced Engine Components Ltd (AEC) has signed a natural gas (NG) engine development programme with Dongfeng Nanchong Automobile Co Ltd (Dongfeng) of China.
Dongfeng is a subsidiary of China's third largest automotive manufacturer Dongfeng Motor Group Co Ltd, known as Second Auto Works and listed company on the Hong Kong stock exchange.
Dongfeng is one of the largest producers of NG engines in China. In the 2006 calendar year Dongfeng will complete a new production facility with a capacity of 30,000 vehicles and 20,000 NG engines per annum. Dongfeng expects to produce 4,000 to 5,000 NG engines in the 2006 calendar year with sales particularly strong through central and southern China.
Dongfeng has stated its focus on NG engines is a result of:
a. China’s lack of natural resources in oil and abundance of natural gas;
b. the reduced greenhouse emissions of NG engines;
c. the cost of using NG in China is 45% less than the cost of using diesel;
d. engine maintenance with NG is more economical than diesel engines; and
e. the added safety of NG engines.
Dongfeng NG engines currently comply with Euro 2 emission standards. Dongfeng has announced that by the end of 2006 their NG engines will be certified to Euro 3. To achieve this stated objective Dongfeng selected AEC to jointly develop a Euro 3, electronically controlled, multipoint, NG engine using AEC's NGVS technology. As a result of Dongfeng's existing NG engines the development timeframe will be relatively short with Dongfeng delivering the base NG engine to AEC's Perth premises in August 2006.
Dongfeng require the development, certification and testing programme completed by the end of 2006 with sales commencing in 2007. Upon successful completion, the parties will negotiate terms for the ongoing commercial arrangements with an initial purchase commitment of 300 AEC NGVS kits for the newly developed engines.
The parties have also agreed, upon completion of the initial development programme, to co-operate in the development of a single point injection system, Euro 3, NG engine. The single point system is more suitable to the lower end of the NG engine market.
With the Dongfeng/AEC development programme, AEC has production arrangements with three of the five largest heavy duty engine manufacturers in China. The combination of ACE’s three strategic partners, FAW, Weichai and now Dongfeng, account for the majority of all diesel engines and trucks sold in China.
Print 
PDF 