04/07/2008 - 10:51

ATG expands reach into India

04/07/2008 - 10:51

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Malaga-based Automotive Technology Group Ltd has entered into an agreement for the potential establishment of a manufacturing facility that would produce one million units each year of its patented Sprintex technology.

Malaga-based Automotive Technology Group Ltd has entered into an agreement for the potential establishment of a manufacturing facility that would produce one million units each year of its patented Sprintex technology.

ATG has signed a memorandum of understanding with Indian company Zoom Developers Ltd, which has a value of $4 billion, to undertake a detailed feasibility study for the establishment of a joint venture.

Under that JV, the companies will sell up to 1 million of ATG's Sprintex Supercharger, which are essentially after-market performance add-ons, mostly for V8 engines.

The new purpose-built facility would provide the JV with the ability to supply in volume to Original Equipment Manufacturer's and aftermarket suppliers both in the India region as well as Europe, North America and South East Asia.

Below is the full announcement:

Automotive Technology Group (ASX: ATJ) has signed a Memorandum of Understanding (MOU) with Zoom Developers Limited (ZOOM) to undertake a detailed feasibility study for the establishment of a Joint Venture to manufacture and sell up to 1 million of ATG's patented Sprintex Supercharger.

Automotive Technology Group Limited ("ATG") Executive Director - Operations Anthony Hamilton said that ZOOM and ATG would undertake a three month feasibility to determine the parameters for a Joint Venture agreement to establish a manufacturing facility capable of producing approximately 1,000,000 units per annum of its patented Sprintex Superchargers.

Zoom Enterprises is one of India's fastest growing business Groups with Projects and businesses worth US$4 billion under various stages of development, spread over China, India, Middle East, Europe, North and South Americas.

The new purpose-built facility would provide ATG and the Joint Venture with the ability to supply in volume to Original Equipment Manufacturer's (OEM) and aftermarket suppliers both in the India region as well as Europe, North America and South East Asia.

Mr Hamilton said under the agreement, ATG and ZOOM would investigate all applications for the technology including the Automotive Supercharger and Industrial compressor applications for the patented Sprintex unit. The unique profile provided the Sprintex unit with performance characteristic's which placed it at the forefront of the Industry.

The Global Automotive market for forced induction, which includes Superchargers is 21 million units annually. This is forecast to reach 36 million units in 2014. (source: "The Global Market for Automotive Superchargers and Turbochargers" by J Daniels, August 2007 edition)

Mr Hamilton said increasing numbers of OEM's were turning to Supercharging to help reach the tougher emissions and fuel efficiency targets being enforced by governments globally.

"The Sprintex Supercharger achieves these two goals while ensuring the performance demanded by today's drivers can be achieved despite the move to smaller capacity engines, " Mr Hamilton said.

The global pressure to meet emissions regulations is only going to increase in the years ahead, which is the driving philosophy behind ATG's Sprintex technology.

 

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