YOUR correspondent Tim Treadgold has put forward some interesting hypotheses to explain the delay in getting AEC’s prospectus over the line (Briefcase, WA Business News, January 13).
However, he missed the real one, which I call the ‘China syndrome’.
Our technology is proven, and has been commercially successful for many years, with nearly 700 buses in Australia and Europe using AEC systems.
While we are continuing to build turnover in those areas, and are developing potentially lucrative new markets in South-East Asia, India, Iran and Pakistan, our immediate plans centre on two major deals in China, where the market for buses and trucks running on compressed natural gas is immense.
Quite simply, many Australian investors, including institutional investors, will not accept that a deal with China has been done until products are rolling out of the factory.
Fortunately, we will be able to provide the hard evidence investors are demanding in the course of 2005. In the meantime, we continue to seek investors prepared to take the time to properly understand our business, which is the export of know-how.
If the current prospectus is not successful, we will finance the Chinese joint venture in other ways. AEC has been around for more than 20 years, but our technology, which provides a sustainable, environ-mentally-responsible alternative to fuel oil, has never been as marketable as it is today.
Advanced Engine Components Limited