Perth, Jan 5, 2009 AEST (ABN Newswire) - Leading Australian clean automotive technology company Automotive Technology Group (ATG) (ASX:ATJ) is pleased to announce that it has signed an agreement with leading Chinese automotive distribution group, Huachuang Zhenxin Automobile Technology Development Co. Limited (Huachuang) for the exclusive distribution of ATG's Sprintex Supercharger products in China.
The agreement will give Huachuang the exclusive rights to market and sell ATG aftermarket automotive products including its patented low emissions, high fuel efficiency Sprintex Supercharger in China, Hong Kong, Macau and Taiwan.
Under the terms of the agreement, Huachuang will purchase a minimum of 5000 ATG supercharger kits during the first 24 months of the agreement and a minimum of 5000 more supercharger kits in the last 12 months of the term. Any remaining superchargers from the first 5000 units (in the initial 24 months) may be carried over to the final 12 moths of the agreement. The agreement is for a period of 36 months.
The supercharger kits will initially be developed by ATG at its state of the art Perth facilities and will then be delivered to Huachuang for final fitting and conversion to Chinese specifications. ATG will provide all necessary technical support, which will include; installation training, accessories development training, and Electronic Control Unit timing training.
The agreement will also see Huachuang undertake the development of supercharger kits. All supercharger kits developed by Huachuang will include an ATG Sprintex Supercharger. Huachuang will also implement a marketing plan to promote the ATG products in each country covered under the agreement.
ATG Executive Director - Corporate Steven Apedaile said the Company was delighted with the agreement with Huachuang, as it continued to reinforce the growing appeal of ATG's Sprintex Supercharger in major global markets to achieve lower emissions and greater fuel efficiency in motor vehicles and motorcycles.
"China is a massive and growing automotive market and we see a major opportunity for the Sprintex Supercharger product as a standard component in the manufacture of new vehicles as well as in the after sales market," Mr Apedaile said.
Huachuang's primary business is the wholesaling and retailing of automotive parts and accessories, among other products, in China and ATG is of the view that the agreement will provide its products with great reach and exposure in the Chinese market.
Huachuang's General Manager Joe Li said that Huachuang Zhenxin Automobile Technology was the domestic leader in the production and sales of turbochargers in China, where it had 60% of auto-performance modification market.
"Based on our experience in the Chinese market, we now look forward to a highly successful longterm relationship with ATG to distribute the Sprintex supercharger in the Greater China region and the rest of the Asian market, and our aim is to become number one in the supercharger market in China," Mr Li said.
ATG is currently developing systems for various Original Equipment Manufacturers (OEMs) automotive products and has successfully applied its patented Sprintex Supercharger to the Harley Davidson Vrod and Ducati Monster motorcycles, highlighting the application of Supercharging to the motorcycle industry as well as the automotive Industry.
The agreement with Huachuang comes after ATG entered into an agreement with leading United Arab Emirates (UAE) motor vehicle distribution group, Al-Futtaim Motors, earlier in the month to investigate the exclusive distribution of ATG's supercharger products in the UAE region.
About Huachuang Zhenxin Automobile Technology Development Co. Limited
Huachuang Zhenxin Automobile Technology Development Co. Limited (Huachuang) is the leader in the production and sales of turbochargers in China, where it has a 60% share of the turbocharger auto modification market.
It was formed from an alliance between Uniwat and Huachuang Technology Co. Uniwat has a strong depth of experience in the auto tuning sector, with 32 large-scale auto tuning shops. Huachuang has rapidly expanding product lines and is constantly improving product performance via its relationships with major tuning shops and the domestic car-modification market in general.
About Sprintex Limited
We go to great lengths to ensure the quality, durability, and ease of installation and maintenance of our patented twin-screw superchargers and systems. All of our supercharger units are run on a SAE J1723 test bench. No supercharger leaves our multi-million dollar facility unless it has met all the stringent tolerances required by the test bench and delivered excellent results. Our superchargers and systems are all built within ISO quality standards.
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