Chinese auto maker Youngman selects Opcon China
Opcon Technology (Suzhou) CO., Ltd (OTS), a subsidiary of Opcon, the energy and environmental technology Group, has signed a Letter of Intent (LOI) concerning the manufacture of components for Youngman Automotive, of Jinhua, China www.young-man.cn an expanding company with around 4,000 employees. Deliveries are expected to start in 2011.
Youngman, which has a history of manufacturing primarily buses, has been approved by the Chinese National Development and Reform Commission for production of cars as part of China’s efforts to develop its own car brands and produce cars with lower emissions.
“This is a further step forward for Engine Efficiency in our strategy of expanding with our technology and our focus on energy efficiency on the Chinese market. The Chinese car and truck market is growing strongly and China has already surpassed the US as the world’s largest market. Last year over 18 million vehicles were sold in China,” says Tom Gustavsson, head of Opcon’s Engine Efficiency business area.
The Letter of Intent concerns Opcon’s high-efficiency oil cooler, which is up to 20-30 per cent more effective than most products supplied by competitors. Greater efficiency in cooling enables corresponding space and weight savings in the engine compartment, resulting in higher performance and lower fuel consumption. The oil cooler, which is also available in heat exchanger format, has previously been sold to the motor racing industry and for other special applications where there are high demands for energy efficiency and top performance.
“We are proud that Youngman wants to use our technology in its efforts to make cars with better fuel economy. We expect sales this year to reach a couple of million Swedish kronor. Going forward we naturally see opportunities grow in line with Youngman’s expansion,” says Tom Gustavsson head of Opcon’s Engine Efficiency business area.
Opcon’s Chinese subsidiary is part of the Engine Efficiency business area and has previously supplied customers in Europe only. With its highly modern production facilities, high quality requirements and TS accreditation, Opcon Technology (Suzhou) is now making a strategic entry in the fast-growing Chinese market with future deliveries directly to Chinese customers. The letter of intent with Youngman is the second significant signing with a Chinese automaker in a short period.
For further information, please contact
Niklas Johansson, vice president, Investor Relations, Opcon AB, tel. +46 8-466 45 00,+46-70-592 54 53
Opcon AB, Box 15085, 104 65 Stockholm, Sweden
Tel. +46 8-466 45 00, fax+46 8-716 76 61
The Opcon Group
Opcon is an energy and environmental technology Group that develops, produces and markets systems and products for eco-friendly, efficient and resource-effective use of energy.
Opcon has activities in Sweden, China, Germany and the UK. There are around 410 employees. The company’s shares are listed on Nasdaq OMX Stockholm. The Group comprises two business areas:
Renewable Energy focuses on the following areas: electricity generation based on waste heat, bioenergy-powered heating and CHP plants, pellets plants, drying of biomass, handling systems for biomass, sludge and natural gas, industrial cooling, flue gas condensation, treatment of flue gases, air systems for fuel cells and measurement and monitoring of processes.
Engine Efficiency focuses on energy-efficient solenoid technology and ignition systems for combustion engines including ethanol, natural gas and biogas engines.
This is information has been disclosed in accordance with the Swedish Securities Exchange and Clearing Operations Act and/or the Financial Instruments Trading Act. The information was issued for publication on April, 26, 2011 at 10:30 CET.