Under the terms of the agreement the joint venture will develop Antonov’s ‘TX-6’ automatic transmission for start of production, planned to begin during the course of 2011.

The 6-speed gearbox will be manufactured in the joint venture facilities, which will provide capacity for a minimum 200,000 transmissions per year.  The manufacturing plant will be established at Landai’s new site in Chong Qing, reducing the level of investment originally anticipated.  Consequently, additional funding will be available to focus on accelerating the development programme to achieve production at the earliest possible date.

Each party will hold 50 per cent of the shares in the joint venture, which will involve investment of RMB 150 million (around €15m) by each party, totalling RMB 300 million, or approximately €30m.  The registered capital of the joint venture will be RMB 50 million (around €5m), of which each party will contribute its RMB 25 million (approximately €2.5m) share in cash.  This funding will be brought into the company as soon as it is legally established, which is expected to occur in the next few weeks.

Landai recorded turnover of USD 70 million in 2008 and employs 1,400 people in the Chong Qing province, with a well established customer base among Chinese vehicle manufacturers including Geely, Chery, Lifan, YuAn and FAW.  It also has established long term partnerships with companies in Iran, India and Korea.  Further information on Lan Dai is available at http://en.cqld.com.

Mr Zhu, chairman of Landai, commented: “After visiting the Antonov Technical Centre in Warwick and assessing its technical capabilities and organisation, I am very happy to have signed the agreement for the joint venture and look forward to working closely with our new partner.”

Dr. Jos E. Haag, executive chairman of Antonov Plc commented: “I am delighted that Antonov is now at the point where we can work towards production with the best possible partner in China, considering that Landai already has good relationships with customers like Lifan, Geely and Chery.”

The joint venture follows Antonov’s recent signing of a cooperation agreement with Chong Qing Landai Industries and Lifan Industry Group, which brings Lifan into the engineering programme to bring the TX-6 into production.  The first step will be to build a TX-6 prototype into two Lifan 620 cars, which is expected to take about six months. 

Six-speed automatic transmissions are much desired by Chinese motorists, but currently have to be imported by the domestic carmakers.   A major technical innovation in Antonov’s all-new TX-6 gearbox is eliminating the traditional torque converter in a planetary transmission, thereby bringing the efficiency of an automatic much closer to that of a manual.   The transmission is protected by worldwide patents.  

Landai’s development strategy is focussed on transmissions being the main business of the company, taking the leading position in China on transmission technology, and gradually transferring production from manual gearboxes to automatics. 

Further information on Antonov technology is available at www.antonovat.com.

The agreement brings Lifan into the engineering programme to bring the TX-6 into production. The first step will be to build a TX-6 prototype into two Lifan 620 cars, which is expected to take about six months. Engineering costs will be covered jointly by Antonov and Landai. Once the project has been successfully completed, Lifan will be a preferred customer for the TX-6 and is expected to place an order for the first batch of transmissions to be produced.

COFTEC, a governmental body in the Chongqing province, has played a significant role in bringing the three parties together and will play a further role in governmental support of the projects.

Mr Zhu, chairman of Landai, commented: “I am very happy my company can participate in this activity, which will help us to become the major transmission manufacturer in China.”
Mr Guan, vice president of Lifan commented: “We are impressed by the quality of the TX-6 prototype and want to secure at least the first 10,000 units produced plus a percentage of planned production we need.”

Mr. Hu representing COFTEC commented: “We are very pleased to have played a significant role in bringing the parties together and to give them strong support, which the government in Chongqing will continue to do in the future with all facilities being available.”

Dr. Jos E. Haag, executive chairman of Antonov commented: “I am delighted with the fast pace of progress in China and to have gained the support of Lifan as a Chinese car manufacturer.”

Six-speed automatic transmissions are much desired by Chinese motorists, but currently have to be imported by the domestic carmakers. Moreover, a major technical innovation in Antonov’s all-new TX-6 gearbox is the breakthrough it has achieved in transmission design by eliminating the traditional torque converter in a planetary transmission, thereby bringing the efficiency of an automatic gearbox much closer to that of a manual transmission.

The TX-6 also avoids the high capital investment as well as the cost, complexity and development issues associated with dual-clutch automated manual transmissions.  Antonov’s hybrid combination of planetary gears and parallel transfers of power reduces the mass and size of the gearbox, whilst improving mechanical efficiency, as well as retaining the virtually seamless gearshifts of an automatic transmission. The TX-6 offers carmakers low development costs and, if required, the ease of introducing it into low volume production.  The transmission is protected by worldwide patents.

Antonov believes Lan Dai is an excellent lead partner for the joint venture, delivering the core capabilities of broad market access, mass production knowledge and transmissions technology experience.  Lan Dai is currently completing new factory and office space, part of which could be allocated to the operations of the joint venture.  Ahead of any agreement, both Antonov and Lan Dai have made a commitment to invest up to €2m, in aggregate, in new development projects with other car manufacturers, including Lifan who will participate in building prototype demonstrator vehicles.

Lan Dai recorded turnover of $70m in 2008 and employs 1,400 people in the Chong Qing province, and has a well established customer base among Chinese vehicle manufacturers including Geely, Chery, Lifan, YuAn and FAW.  It also has established long term partnerships with companies in Iran, India and Korea.  Further information on Lan Dai is available at http://en.cqld.com.

The letter of intent anticipates that the joint venture will need a minimum of €30m of funding, but this could be reduced through access to the existing facilities of Lan Dai.  Both parties have demonstrated a willingness to invest €15m, but this figure could be reduced by the involvement of other partners. 

Mr Zhu Tangfu, chairman of Lan Dai, commented: “One million cars a week are made in China, which is now a bigger market than the USA. The partnership with Antonov is a key step for Lan Dai to become the largest supplier of transmissions in China.  I am very happy to begin this exciting journey with Antonov, and have demonstrated our confidence in the JV by committing €1m for further development work before the final JV agreement is signed.”

Dr Jos E. Haag, executive chairman of Antonov, said: “This step further strengthens our relationships with the Chongqing governments and it will create a strong platform to manufacture and market Antonov’s proprietary TX6 transmission, especially since Lan Dai have all the capabilities required to deliver success for a joint venture.”

Antonov’s trading activities in China, under the management of Dr Yun Kang, are driven through its office in Chong Qing, where the company has a prototype vehicle available to demonstrate its 6-speed transmission technology to potential partners and prospective automotive clients.  Six-speed automatic transmissions are much desired by Chinese motorists, but currently have to be imported by the domestic carmakers.

The major innovation in Antonov’s all-new TX-6 gearbox is the technical breakthrough it has achieved in automatic transmission design, which has enabled the company to eliminate the traditional torque converter in a planetary transmission, thereby bringing the efficiency of an automatic gearbox much closer to that of a manual transmission.   
The TX-6 avoids the high capital investment also the cost, complexity and development issues associated with dual-clutch automated manual transmissions.  The transmission uses components similar to those of current production automatics.  It therefore provides a solution for manufacturers with millions already invested in existing manufacturing plants to modify their conventional automatic transmission designs by eliminating the torque converter.  

Antonov’s hybrid combination of planetary gears and parallel transfers of power also reduces the cost, weight and size of the gearbox, whilst improving mechanical efficiency, aswell as retaining the virtually seamless gearshifts of an automatic transmission.  In addition, the TX-6 offers car makers low development costs and, if required, the ease of introducing it into relatively low volume production.  The transmission is protected by worldwide patents.  

Further information on Antonov technology is available at www.antonovat.com.

A letter of intent has been signed with Sichuan Jianghan Industrial Group for their potential participation in the joint venture, including the confirmation of Jianghan’s intention to invest €15m alongside Antonov’s €15m commitment.  Both Antonov and Jianghan also agree to actively explore the involvement of additional partners who would provide core capabilities of market access, mass production and transmission technology.

Mr Tang, president of Jianghan, commented: “I am very happy my company is able to participate in an activity in the automotive industry in China, which is expected to bring good results.  My intention to cooperate with Antonov and to contribute €15m to the joint venture is proof of that and with my experience in China I am happy to set up the preparation of the joint venture and its preliminary finance.”

Dr Jos Haag, executive chairman of Antonov, commented: “I am happy to have been able to see some proof of life in China as far as the TX-6 is concerned.  We will continue discussions in China in the short term and will update the market after that.”

Antonov’s current trading activities in China, under the management of Dr Yun Kang, are driven through its office in Chong Qing, where the company already has a prototype vehicle (1.6-litre VW Golf) to demonstrate its 6-speed transmission technology to potential partners and prospective automotive clients.  Six-speed automatic transmissions are much desired by Chinese motorists, but currently have to be imported by the domestic carmakers.

The major innovation in Antonov’s all-new TX-6 gearbox is the technical breakthrough it has achieved in automatic transmission design, which has enabled the company to eliminate the traditional torque converter in a planetary transmission, thereby bringing the efficiency of an automatic gearbox much closer to that of a manual transmission.  

The TX-6 avoids the high capital investment also the cost, complexity and development issues associated with dual-clutch automated manual transmissions.  The transmission uses components similar to those of current production automatics.  It therefore provides a solution for manufacturers with millions already invested in existing manufacturing plants to modify their conventional automatic transmission designs by eliminating the torque converter.  

Antonov’s hybrid combination of planetary gears and parallel transfers of power also reduces the cost, weight and size of the gearbox, whilst improving mechanical efficiency, as well as retaining the virtually seamless gearshifts of an automatic transmission.  In addition, the TX-6 offers car makers low development costs and, if required, the ease of introducing it into relatively low volume production.  The transmission is protected by worldwide patents.  

Further information on Antonov technology is available at www.antonovat.com.

Mr Ramler has worked for three of the leading companies in the automotive industry in Germany:  Daimler-Benz AG, Mercedes-AMG GmbH and Porsche AG, where he headed powertrain and engine activities for street cars and racing cars, as well as supporting racing activities worldwide for all three companies.  At Porsche he headed the V10 engine programme for the Carrera GT and helped achieve a double win in the 24 hours of Le Mans in 1998.  In 2006 Mr. Ramler left Mercedes-AMG to form his own engineering consultancy with a number of well known automotive companies as clients.  Ramler graduated from RWTH (Rheinisch-Westfaelische Technische Hochschule) Aachen University as a certified engineer in 1981.

Antonov recently announced its revised business strategy with a primary focus on the commercialisation of numerous 2-speed applications, which have a shorter time to market; securing commercial engineering projects with both automotive and non-automotive clients using its core competencies and technologies; and continued support of its TX6 6-speed automatic transmission and other products with a longer time to market.  The revised strategy places greater emphasis on generating short term revenues in order to reduce the level of ongoing fundraising required to support products with a longer development cycle.  

The strategy includes bringing into production the latest innovation of dual-speed drives for engine ancillaries.  The novel addition of gearing to alternators and superchargers, to give but two examples, allows them to operate more efficiently.   Applied as a dual‐pulley unit to give a two‐speed belt driven alternator, air‐conditioning pump and water pump, the accumulated energy saving can translate into 5 per cent improved fuel economy. Antonov’s purely mechanical self-shifting system also has the major benefit of not requiring external controls, which significantly reduces vehicle integration and calibration costs. 

With the experience of low volume units already in production, Antonov is now developing high volume original equipment applications, such as a dual-speed engine mounted pulley.   Integrated into an alternator the company’s dual-speed drive provides improved output at the lower engine idle speeds increasingly sought by engine designers to reduce fuel consumption.  The Antonov drive can also be adapted to be back driven by the alternator for engine restart and regenerative braking.

The Antonov drive is also ideally suited to electric vehicles.  Most electric drives can benefit from a simple two-speed transmission, which allows a lower start ratio for better acceleration and a higher cruise ratio to reduce noise and improve motor performance and efficiency.

To further help bring its products to market, Antonov has agreed two new financing facilities with its largest shareholder Quivest B.V. including €20 million of equity finance that will help accelerate the introduction of its numerous 2-speed applications. 

The company has also agreed a €15 million loan facility to help meet the expected costs of a possible joint venture in China for the production of its TX6 automatic transmission.  Antonov’s all-new TX6 gearbox provides a technical breakthrough in automatic transmission design, eliminating the traditional torque converter and bringing the efficiency of an automatic gearbox closer to that of a manual transmission.  

Current trading activities in China are driven through the company’s office in Chong Qing, where Antonov can already demonstrate a high quality 6-speed prototype vehicle.  Antonov’s major innovation for its state-of-the-art electronically controlled six-speed automatic transmission is that it has achieved for the first time a hybrid combination of planetary and transfer gearsets operating in parallel.  

Whilst discussions in respect of the TX6 joint venture have not proceeded as fast as originally anticipated, the board remains optimistic that a deal will be signed and has taken this opportunity to secure the majority of the financing expected to be required.  Under the terms of the loan facility, Antonov will have the right to draw down the €15 million at any time in the next four years, subject to the signing of a letter of intent with third parties to create the joint venture.

Quivest is an investor based in The Netherlands and has been the main funder behind Antonov, providing over €15 million in the last three years.  Quivest is a substantial shareholder in Antonov currently holding 21.49 per cent of the company’s issued share capital. 

Further information on Antonov technology is available at www.antonovat.com.