Advanced Engine moves into China

Malaga-based Advanced Engine Components Ltd has announced its first commercial sales to First Auto Works in China with an order for more than $400,000. FAW’s order is for AEC’s natural gas vehicle system kits, which are to be delivered progressively over the next three months.

This is the beginning of FAW’s requirement, announced last October, that AEC has the capability to supply approximately $500,000 worth of NGVS kits on a monthly basis.

AEC’s deliveries to this FAW order, together with revenue to date, invoicing of completed engine development programs for Motive Energy in Australia and Weichai in China, will result in a minimum 50 per cent increase in sales revenue for the year ended June 30 2006 over the previous financial year.

The current FAW order takes the number of NGVS kits delivered or to be delivered to FAW and Weichai in China to 162.

FAW has only recently started marketing its natural gas buses and trucks, while Weichai has just completed final commissioning and certification of its natural gas engines.

AEC believes the monthly number of kits bought by FAW should increase progressively over the next 12 months.  The FAW sales will be complemented throughout the 2007 financial year as commercial NGVS kit sales commence to Weichai in China, Motive Energy in Australia, ACP in Pakistan and Swaraj Mazda in India.