QINGDAO, China, March 26 /Xinhua-PRNewswire-FirstCall/ -- Sinoenergy Corporation (OTC Bulletin Board: SNEN), ("Sinoenergy"), a manufacturer of compressed natural gas (CNG) vehicle and gas station equipment and a designer, developer and operator of CNG filling stations in China, announced today that its wholly-owned subsidiary, Qingdao Sinogas General Machinery Limited Corporation, has reached an agreement (equity purchase agreement) with Jiaxing Lixun Automotive Electronic CO., LTD ("Lixun") to acquire sixty percent of its shares in exchange for a cash payment of US$390,000. After the equity purchase agreement signed, the Company and Lixun will enter into an equity transferring process, and the transaction is expected to be completed before the middle of April.
Jiaxing Lixun Automotive Electronic CO., LTD is focused on designing and manufacturing electric control devices for alternative fuel (CNG/LPG) vehicles, as well as a full range of electric devices used for multi powered-vehicles such as computer controllers, conversion switches, spark advancers, tolerance sensors, emulators etc. Lixun is one of the largest manufacturers and exporters of conversion kit electric devices in China; it has established a wide customer base across Europe, Russia, the Middle East and southern Asia.
"We are excited about this new venture, which complements our existing product line and creates new opportunities to penetrate both local and international multi-powered vehicle equipment markets," said Mr. Bo Huang, CEO of Sinoenergy Corporation. "We expect that additional synergies effects can be achieved with our existing conversion kit business and Sinoenergy will be better positioned to participate in the rapid growth of CNG powered vehicles in China."
About Sinoenergy:
Sinoenergy is a manufacturer of compressed natural gas (CNG) vehicle and gas station equipment as well as a designer, developer and operator of CNG stations in China. In addition to its CNG related products, the Company also manufactures a wide variety of pressure containers for use in different industries, including the design and manufacture of various types of pressure containers in the petroleum and chemical industries, the metallurgy and electricity generation industries and the food and brewery industries.
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