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Innovative vehicle transmissions company Antonov has formally incorporated its joint venture company in China with Chonqing Landai Industry Co to produce the Antonov TX6 automatic transmission.

Landai is building a new manufacturing facility for its existing operations at a site in Chongqing and part of this will now be allocated for the production of the TX6, which is expected to start in late 2011. Production capacity is expected to be around 200,000 units a year with the aim of selling to car manufacturers in China.

Antonov and Landai are also finalising various agreements in relation to the joint venture, including the license agreement, under which the joint venture will manufacture the TX6, and the engineering services agreement, under which Antonov will provide support to the joint venture in moving the TX6 into mass production. Both agreements are to be signed in December.

Technical targets for TX6 were achieved in 2008, including shift quality and drive comfort, noise, efficiency and fuel consumption, as well as manufacturing feasibility. This year has seen the finalising of the key parameters of the production design of the TX6, one of which is its compact transverse length of 320mm, making it suitable for smaller vehicles as well as mid size cars.

The intention is that initially approximately 60 per cent of production components for the TX6 will be manufactured by Landai, increasing later. Antonov has selected Conti Temic Microelectronic for the development and implementation of control software for the TX6 as well as for the delivery of the production transmission control unit or TCU. Antonov is currently in negotiations with a potential supplier of hydraulic blocks for the TX6.

Commenting on the incorporation of the joint venture, Dr Jos Haag, Antonov’s chairman and chief executive, said: “Today marks an important step in Antonov's strategy to produce and distribute the TX6 in China. Production of front wheel drive vehicles in China with transversely mounted engines up to 270Nm torque is forecast to exceed 1.8 million vehicles in 2012 and the TX6 offers a competitive proposition for manufacturers in this market segment.”

Antonov's initial investment in the joint venture is €2.5 million, of which €375,000 is payable within 90 days of the incorporation with the balance paid in two years. The company expects that this will be met through its €15 million loan facility with Quivest announced on 19 February 2009.

© PE Publishing Ltd, 2009