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Dynetek Cylinders to set up winding & systems assembly facility near Mumbai
Written by Vijay   
Tuesday, 13 December 2011
Mumbai: Dynetek Industries Ltd, a manufacturer of proprietary fuel storage systems, has  executed a shareholders agreement with S.V. Greentech Private Limited, an affiliate of S.V. Energy Partnership to form Dynetek Cylinders India Pvt. Ltd. (DNK India), an Indian joint venture 49% owned by Dynetek and 51% owned by S.V. Greentech.

In exchange for its 51% interest, S.V. Greentech will invest the capital necessary for DNK India to establish a winding and systems assembly facility near Mumbai, India and fund the initial working capital requirements of DNK India.

The facility is expected to be operational by the end of the second quarter of 2012 and will replicate the operations of Dynetek's German subsidiary.

Liners will continue to be sourced from Dynetek on an exclusive basis and shipped to DNK India for cylinder winding and final system manufacture and assembly.  Pending establishment of the DNK India facility, Dynetek will manufacture and provide cylinders and systems to DNK India to meet initial demand.  Once sufficient sales volumes have been achieved by DNK India , a liner production facility may be established in India.

"We are excited about the opportunity to capitalize on our first-mover advantage in India.  Dynetek remains the only Type III manufacturer with systems certified for sale in India.  Prototype systems have been provided to several leading municipal bus operators with very encouraging results that highlight the performance and long-term life cycle economic advantages of our Type III product over the currently used Type I alternatives," said Douglas Pigot , Executive Chairman of the Board of Directors of Dynetek.

"We see a great future for Dynetek's products in India where demand for CNG fueling and bulk transportation systems continues to grow at an accelerating rate," said Amit Shah , Director of S.V. Greentech.

CNG (Compressed Natural Gas) Systems Applications for Buses in the Indian Market

In India, the use of natural gas vehicles and the associated infrastructure are well established. According to "Worldwide NGV Statistics" published in the 2011 issue of The GVR, India ranks 5th in the world for total natural gas vehicles with over 1 million vehicles powered by natural gas. Management estimates the Indian market for lightweight cylinders will expand due to the increasing number of city gas distribution systems, a preferential natural gas pricing policy, stricter emission regulations and government funding of CNG fueled fleet additions.

Dynetek designs, produces and markets one of the lightest and most advanced fuel storage and refueling systems for compressed natural gas, low emission vehicles and compressed hydrogen, zero-emission fuel cell vehicles.

 
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