The UK's Antonov plc and Sichuan Jianghan Industrial Group last week signed a letter of intent to produce the British company's six-speed TX6 automatic transmission under a new joint venture.

 

Under the terms of the agreement, Antonov and Sichuan Industrial each intend to invest 15 million euro (102.5 million yuan). Both companies will seek to involve additional partners in the project. No timeframe or possible location for production was given.

 

Until Chinese production starts, Antonov says it will produce its TX6 automatic transmissions in France and export them to China from 2011.

 

Before Jianghan, Antonov had talked to two other Chinese companies with an eye to establishing a production center for its transmission systems in China.

 

One potential partner was Chongqing Loncin Holdings, a leading Chinese motorcycle and small gasoline engine manufacturer.

 

In 2007, the two companies negotiated for a 50 50 joint venture to build the TX6 system in Chongqing. Antonov originally hoped the joint venture could be established in 2008, but after a pilot project to build prototype vehicles equipped with the TX6, Loncin appears to have lost interest.

 

Another plan between Antonov and Geely Automobile Co. was terminated in 2007.