Breakthrough on the Chinese vehicle market for Opcon’s business area Engine Efficiency
Energy and environmental technology group Opcon’s subsidiary, Opcon Technology (Suzhou) CO., Ltd (OTS), has signed a Letter of Intent (LOI) on the long-term production and delivery of components to Beijing Automotive Powertrain CO., Ltd (BAPC). BAPC manufactures engines and transmissions, and is a subsidiary of the leading Chinese car manufacturer BAIC, with 40000 employees.
Opcon’s Chinese subsidiary, OTS is part of the Engine Efficiency business area and has up to now delivered exclusively to clients in Europe. With its state of the arts productions facilities and high quality standards that has recently been TS-certified, OTS is now entering also the fast-growing Chinese market, with future deliveries directly to Chinese customers. The Letter of Intent with BAPC is a first example of this strategic move.
“The Chinese car and truck market is growing fast, with China having already overtaken the U.S. as the world’s largest market. It is estimated that already this year 17 million cars will be sold in China. This is just the beginning of our strategy within Engine Efficiency to take our technology and our focus on energy efficiency to the local Chinese market", says Tom Gustavsson, Business Area Manager for Engine Efficiency.
“The first step deals with the product and we have now agreed on the details. We will also begin the work on the transfer of technology from Sweden immediately and the setting up of a production line for mass production. We also hope that the LOI will eventually lead to expanding this cooperation to more products”, says Tom Gustavsson, Business Area Manager for Engine Efficiency.
Opcon’s Engine Efficiency Business Area works mainly with energy efficient solenoid technology and ignition systems for combustion engines including ethanol, natural gas and bio gas engines for sophisticated customers like Scania, Cummins, Saab, Husqvarna, Kongsberg, Haldex, etc.
For further information, please contact
Niklas Johansson, Vice President, Investor Relations, tel. +46-70-592 54 53
Opcon AB, Box 15085, 104 65 Stockholm
Tel. 08-466 45 00, fax 08-716 76 61
e-mail: info@opcon.se
www.opcon.se
The Opcon Group
Opcon is an energy and environmental technology group that develops, produces and markets systems and products for the eco-friendly, efficient and resource-effective use of energy.
Opcon has operations in Sweden, China, Germany, and the UK. There are around 390 employees. The company’s shares are listed on Nasdaq OMX Stockholm. The Group comprises two business areas:
Renewable Energy focuses on generating electricity from waste heat, bioenergy, systems for handling natural gas, industrial cooling, recycling of heat, drying of biomass, treatment of flue gases, handling systems for biomass, etc., air systems for fuel cells and the 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.