28/09/2006 - 12:29

AEC to build natural gas engines in Bangladesh through JV

28/09/2006 - 12:29

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Malaga-based Advanced Engine Components has announced plans to produce natural gas engines in Bangladesh, after signing a memorandum of understanding with Inter Baraka Holdings Motors Ltd.

AEC to build natural gas engines in Bangladesh through JV

Malaga-based Advanced Engine Components has announced plans to assemble natural gas engines in Bangladesh, after signing a memorandum of understanding with Inter Baraka Holdings Motors Ltd.

The two companies will form a joint venture, to be named IBAEC Engine Ltd, that will import the base natural gas engines from AEC's Chinese production customers, for assembly in Bangladesh.

The company recently signed an agreement with China's third largest automotive manufacturer Dongfeng Nanchong Automobile Co Ltd to develop a natural gas engine compatible with Euro-3 emission standards.

 

 

The full text of the AEC press release is pasted below

Advanced Engine Components Limited has signed a Memorandum of Understanding with IBH Motors Ltd of Bangladesh. Pursuant to the MOU, ACE and IBH will jointly form a company, to be named IBAEC Engine Limited, to assemble natural gas engines in Bangladesh.

The joint venture company will import base NG engines from ACE's original equipment manufacture customers in China and incorporate ACE's natural gas vehicle system at the company's facilities in Bangladesh. The NG engines will be produced for both the Bangladesh and export markets.

IBH is part of the Inter Baraka Holdings group. IBH produce only CNG powered vehicles. Their product range includes TARO city buses and mid city buses, RAINO highway buses and KENDO trucks.

Pursuant to the MOU, IBH will provide the land, buildings and other infrastructure and ACE will provide the technical knowledge, support and services. IBH will fund all local operating costs. The final shareholding of the joint venture company will be determined when project cost evaluations are completed and a formal joint venture agreement is signed. This is expected to occur in November 2006.

Initial production capacity, of the joint venture, is planned for 200 to 300 NG engines per month.

Bangladesh has significant NG reserves and is building significant NG refuelling capacity for NG vehicles. The importing, of NG base engines and the ACE NGVS as raw materials, will save the joint venture company up to 30% in local taxes.

IBH selected ACE due to its world leading NGVS and OEM contracts in China. ACE will benefit from its shareholding in the joint venture company together with the ongoing supply of NGVS and other specialised engine components to the rapidly expanding NG market in Bangladesh.

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