Coates International Ltd (OTCMKTS:COTE) has announced that the company has reconfirmed four of its firm orders. The four orders come from the UAE and are worth more than $50 million. Mr. Howard Barmil, the company’s international sales and marketing director, also took the opportunity to update shareholders on the workings of the company. Additionally, the company has also revealed that significant progress is being made with the development of advanced green combustion engines in China. The company representatives in China have been in talks with a Cummins engine manufacturer and are expected to begin production soon.
The lead product from Coates is a CSRV green combustion engine, which is already being manufactured at the company headquarters in New Jersey. A second product line for the product is to be set up in China, where talks have been underway for some time. A Chinese production line could be beneficial for the company in many ways. Apart from serving as a second base for Asia, the company can lower its cost of production significantly.
For now the engine is being aimed at people seeking generators that run on CNG, LNG or other cheaper fuels. The larger part of this market is either based in the UAE or Africa. This is why it is essential for the company to have an Asian base. At the moment, the company has been charging 50% upfront payments, in order to boost the production process. The first delivery is expected to be ready within the next 6-8 weeks. As per the shareholder update, 150KW industrial and commercial generators are in production in NJ. The update also indicated that the demand for 150KW and 35KW propane generators is high. Additionally, the company is hiring additional skilled labor at the NJ plant. The orders by the 4 firms have actually increased, which has led to the additional hiring.
Coates International Ltd (OTCMKTS:COTE) experienced a decline of 28.3% on June 11, after trading 712.91 million shares during the session to close at 0.0038.