Omnitek Engineering Corp. says it has shipped an initial order of natural gas vehicle (NGV) conversion kits to the company's recapitalized Peruvian joint venture company.
Pegaco Bus, a dealer of compressed natural gas (CNG) buses in Peru, recently acquired a 50% ownership position in Omnitek Peru, with Omnitek Engineering retaining its current 20% ownership position in the joint venture conversion operation and netting 100% of the conversion kit sales to this entity.
The companies say the enhanced capital structure of the partnership is expected to support the ‘rapidly increasing demand for diesel engine conversions in the region.’
‘Peru, a region that is committed to capitalizing on record low natural gas prices and reduced emissions levels, continues to represent an important growth market for our company,’ says Werner Funk, president and CEO of Omnitek Engineering. ‘Fleet and bus operators are attracted to our proven and reliable conversion technology, as well as a less than one year return on investment.’