Antonov expects to start producing the transmission system in the fourth quarter of 2011, at a new facility to be built on premises owned by its Chinese partner, Chongqing Landai Industrial Co. Once operational, the joint venture facility will have annual production capacity of approximately 200,000 units.

The British company plans to initially invest 2.5 million euros ($3.7 million) in the new venture.

Currently, Antonov and its Chinese partner still have to finalize various aspects of their co-operation. There include details of licensing for the production of the TX6, and the engineering services agreement under which Antonov will support the new venture. Both are expected to be signed on in December, Antonov said in the statement.

According to Antonov's plan, some 60% of the system's components will initially be made by Landai, although this proportion will increase in the future.

Antonov has also selected Conti Temic Microelectronic GmbH for the development and implementation of control software for the TX6 as well as for the delivery of the production Transmission Control Unit, TCU. The British company said it is now negotiating with an unidentified potential supplier of the hydraulic blocks for the TX6.

"Production of front wheel drive vehicles in China with transversely mounted engines up to 270Nm torque is forecast to exceed 1.8 million vehicles in 2012 and the TX6 offers a competitive proposition for manufacturers in this market segment," said Jos Haag, Antonov's Chairman and Chief Executive, in a statement.

Listed in London and Amsterdam, Antonov designs, prototypes and develops a wide range of mechanical transmissions.

Established in 1996, Landai is a private company capable of producing 300,000 sets of gearboxes for cars and mini vans; 600,000 sets of transmission gears used in cars; 150,000 sets of high-pressure die casting pieces for engine cylinders and 3500,000 sets of gears for motorcycles each year, according to information released on the Chinese company's Web site.