The Tata deal is not the only deal that ACE has going for it....

The Tata deal is not the only deal that ACE has going for it. Norinco,as mentioned below (from a June company announcement) should be a partner that could be the making of ACE. A foot in the Chinese camp as well as in the Indian one should prove to be a telling factor for the success or failure of ACE.

"CO-OPERATION AGREEMENT WITH NORINCO EQUIPMENT

Advanced Engine Components Limited ("ACE") entered into a Strategic Alliance Agreement with Norinco Equipment Co Ltd ("Norinco Equipment") in April 2009.

ACE is pleased to announce it has now signed a Co-operation Agreement with Norinco Equipment. This new agreement supplements the earlier Strategic Alliance Agreement. With the Co-operation Agreement, ACE will receive a royalty on Norinco Equipment's gross sales revenue generated from the Strategic Alliance. The royalty is in addition to the revenue ACE receives from selling its NGV components, at normal commercial rates, to Norinco Equipment, Norinco Equipment related entities and Norinco Equipment customers.

Through the Strategic Alliance Agreement the parties agreed to jointly develop business within the natural gas vehicle ("NGV") industry. This included industry representation; technical co-operation and training; joint marketing activities; co-operating in sourcing NGV technical solutions; developing new NGV products and equipment; facilitating NGV and natural gas engine production through Norinco Equipments related entities; and Norinco Equipment using ACE NGV components exclusively.

All intellectual property, other than that developed jointly, remains the property of the respective parties.

The Strategic Alliance has been working very well. Activities to date include:


joint development of the North Huade Diesel Engine Company BF6M1015 diesel engine to run on natural gas;


ACEs collaboration with Norinco Equipment related entities including Beijing University of Technology and other research centres; North Benchi Truck; North Huade Neoplan Bus Co; Henan Shaolin Auto; and various CNG cylinder factories; and


joint presentations to major potential customers for significant contracts in Egypt, Pakistan, Thailand, China and other countries.

The Co-operation Agreement continues until December 2015.

The Strategic Alliance Agreement was a very important link to ACE for its ongoing development in China and China export markets. The Co-operation Agreement strengthens those links and provides ACE with a revenue stream additional to the sale of NGV systems, components and associated engines.

For further information please contact:
Tony Middleton (Managing Director) on (08) 9209 6900; or
Email: [email protected]



About Norinco Equipment Co Ltd

Norinco Equipment is involved in the development, sale and export of natural gas vehicles, engines, related products and CNG refuelling stations. Norinco Equipment has established a global operation and information network. It has a worldwide marketing network and reputation for quality and service.

Norinco Equipment is a wholly owned subsidiary of China North Industries Group Corporation ("CNGC").

CNGC, a State owned enterprise, was formally established in 1980 with the approval of the Chinese Government. It is a major international conglomerate engaged in a wide range of industries including defence equipment, chemical products, vehicle and machinery production, international engineering contracts, real estate, hotels and travel services.

CNGC has 133 owned or related entities including companies and research institutions.

CNGC has more than 80 overseas economic and trade offices, with branches in over 30 countries and regions."