Chinese Venture Update


 

TIDMATV 
 
RNS Number : 6382R 
Antonov PLC 
05 May 2009 
 

ATV.L 
 
 
Antonov plc 
("Antonov" or the "Company") 
 
 
Further Update on Chinese venture 
 
 
The Company announces further progress in its efforts to form a joint venture 
("JV") in China to manufacture and market its proprietary TX-6 transmission, 
with the signing of a further letter of intent between Chongqing Lan Dai 
Industry Co Ltd ("Lan Dai") and Antonov at a ceremony attended by leaders of the 
Bishan County and Chongqing provincial governments. Antonov has previously 
signed a letter of intent with Sichuan Jianghan Industrial Group Co. Ltd, as 
announced on 30 March 2009. Efforts are now directed to finalise the detailed 
structure of the JV, including the final list of partners, at the earliest 
opportunity. 
 
 
The Company believes Lan Dai is an excellent lead partner for the JV, 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 JV. 
Ahead of any agreement, both Antonov and Lan Dai have made a commitment to 
invest up to Euro 2 million, 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 USD 70 million 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 JV will need a minimum of Euro 30 
million of funding, but this could be reduced through access to the existing 
facilities of Lan Dai. Both parties have demonstrated a willingness to invest 
Euro 15 million, 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 Euro 1 
million 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 JV". 
 
 
Enquiries. 
Please contact: - 
+-------------------------------------------------------+----------------------+ 
| Jos Haag, Executive Chairman, Antonov plc             |     +44 1926 455 800 | 
|                                                       |     +31 651 561 767  | 
+-------------------------------------------------------+----------------------+ 
| Tony Rawlinson/Antony Legge, Dowgate Capital Advisers |    +44 207 492 4777  | 
+-------------------------------------------------------+----------------------+ 
| Shane Dolan, Biddicks                                 |     +44 207 448 1000 | 
+-------------------------------------------------------+----------------------+ 
 
 
 
 
www.antonovplc.com 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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