Antonov Secures EUR 15m Backing From Jianghan Industrial For Its TX-6 Automatic Transmission

WARWICK, UNITED KINGDOM – March 31, 2009: Antonov, the UK-based vehicle transmission specialist, has strengthened its relationships with the Chongqing and Sichuan governments to create a firmer and broader platform for the possible formation of a joint venture in China to produce its proprietary TX-6 automatic transmission, which has the major innovation of eliminating the traditional torque converter for a more efficient planetary gearbox.

A letter of intent has been signed with Sichuan Jianghan Industrial Group for their potential participation in the joint venture, including the confirmation of Jianghan's intention to invest €15m alongside Antonov's €15m commitment. Both Antonov and Jianghan also agree to actively explore the involvement of additional partners who would provide core capabilities of market access, mass production and transmission technology.

Mr Tang, president of Jianghan, commented: “I am very happy my company is able to participate in an activity in the automotive industry in China, which is expected to bring good results. My intention to cooperate with Antonov and to contribute €15m to the joint venture is proof of that and with my experience in China I am happy to set up the preparation of the joint venture and its preliminary finance.”

Dr Jos Haag, executive chairman of Antonov, commented: “I am happy to have been able to see some proof of life in China as far as the TX-6 is concerned. We will continue discussions in China in the short term and will update the market after that.”

Antonov’s current trading activities in China, under the management of Dr Yun Kang, are driven through its office in Chong Qing, where the company already has a prototype vehicle (1.6-litre VW Golf) to demonstrate its 6-speed transmission technology to potential partners and prospective automotive clients. Six-speed automatic transmissions are much desired by Chinese motorists, but currently have to be imported by the domestic carmakers.

The major innovation in Antonov’s all-new TX-6 gearbox is the technical breakthrough it has achieved in automatic transmission design, which has enabled the company to eliminate the traditional torque converter in a planetary transmission, thereby bringing the efficiency of an automatic gearbox much closer to that of a manual transmission.

The TX-6 avoids the high capital investment also the cost, complexity and development issues associated with dual-clutch automated manual transmissions. The transmission uses components similar to those of current production automatics. It therefore provides a solution for manufacturers with millions already invested in existing manufacturing plants to modify their conventional automatic transmission designs by eliminating the torque converter.

Antonov’s hybrid combination of planetary gears and parallel transfers of power also reduces the cost, weight and size of the gearbox, whilst improving mechanical efficiency, as well as retaining the virtually seamless gearshifts of an automatic transmission. In addition, the TX-6 offers car makers low development costs and, if required, the ease of introducing it into relatively low volume production. The transmission is protected by worldwide patents.