Peruvian Transportation Company Acquires Position in Omnitek Engineering's Diesel-to-Natural Gas Conversion Center Partnership
SAN MARCOS, Calif., Aug. 29, 2012 (GLOBE NEWSWIRE) -- Omnitek Engineering Corporation (OTCBB:OMTK) today announced Pegaco Bus has acquired a 50 percent ownership position in the company's Omnitek Peru joint venture, a partnership offering conversion services for diesel engines to operate on natural gas, and a new order for conversion kits and related components to meet increased demand in Peru. Additional terms were not disclosed.
Omnitek Engineering will retain its current 20 percent ownership position in the joint venture conversion operation in Peru and realize
100 percent of the conversion kit sales to this entity.
Based in Lima, Peru, the joint venture has operated as Omnitek Peru S.A.C. since its establishment in 2009.
Peru, with an excellent natural gas infrastructure and a commitment to reducing carbon emissions, continues to represent an important growth market for our company. Peruvian bank loans are readily available to fleet operators for conversions and diesel engine re-powering is receiving strong interest from fleet operators -- especially with a less than a one year return on investment, said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.
The additional liquidity provided by Pegaco's investment will enable the joint venture to take advantage of an incredibly large market for truck and bus conversions in Peru -- a market that industry sources estimate will reach at least 20,000 bus conversions and 50,000 truck conversions in the next few years, said Javier Ojeda, general manager of Omnitek Peru.
Omnitek Engineering's technology offers an economical solution to Peruvian bus operators who cannot afford to purchase new natural gas buses. We look forward to working with Omnitek Peru and accelerating the adaption of natural gas, said Jorge Luis Maldonado, chief executive officer of Pegaco.
Separately, Omnitek Engineering said its East Coast partner is currently operating an Omnitek-converted Navistar DT466 natural gas truck engine for a mandatory 100-hour period prior to Environmental Protection Agency required emissions testing for certification of conversion kits.
About Pegaco Bus
Pegaco Bus is one of the fastest growing companies in Peru. It is a leading dealer of CNG buses and the exclusive dealer of Kinglong of China buses, the second largest bus manufacturer in China.
About Omnitek Engineering Corporation
Omnitek Engineering, Corp. develops and sells new natural gas engines, as well as proprietary diesel-to-natural gas conversion systems -- providing global customers with innovative alternative energy and emissions control solutions that are sustainable and affordable.
Omnitek Engineering will retain its current 20 percent ownership position in the joint venture conversion operation in Peru and realize
100 percent of the conversion kit sales to this entity.
Based in Lima, Peru, the joint venture has operated as Omnitek Peru S.A.C. since its establishment in 2009.
Peru, with an excellent natural gas infrastructure and a commitment to reducing carbon emissions, continues to represent an important growth market for our company. Peruvian bank loans are readily available to fleet operators for conversions and diesel engine re-powering is receiving strong interest from fleet operators -- especially with a less than a one year return on investment, said Werner Funk, president and chief executive officer of Omnitek Engineering Corporation.
The additional liquidity provided by Pegaco's investment will enable the joint venture to take advantage of an incredibly large market for truck and bus conversions in Peru -- a market that industry sources estimate will reach at least 20,000 bus conversions and 50,000 truck conversions in the next few years, said Javier Ojeda, general manager of Omnitek Peru.
Omnitek Engineering's technology offers an economical solution to Peruvian bus operators who cannot afford to purchase new natural gas buses. We look forward to working with Omnitek Peru and accelerating the adaption of natural gas, said Jorge Luis Maldonado, chief executive officer of Pegaco.
Separately, Omnitek Engineering said its East Coast partner is currently operating an Omnitek-converted Navistar DT466 natural gas truck engine for a mandatory 100-hour period prior to Environmental Protection Agency required emissions testing for certification of conversion kits.
About Pegaco Bus
Pegaco Bus is one of the fastest growing companies in Peru. It is a leading dealer of CNG buses and the exclusive dealer of Kinglong of China buses, the second largest bus manufacturer in China.
About Omnitek Engineering Corporation
Omnitek Engineering, Corp. develops and sells new natural gas engines, as well as proprietary diesel-to-natural gas conversion systems -- providing global customers with innovative alternative energy and emissions control solutions that are sustainable and affordable.