~Agreement Provides Future Scalability and Cost Effective Production
Once Threshold Volumes Have Been Achieved~
VANCOUVER, Feb. 20, 2012 /CNW/ - Westport Innovations Inc. (TSX: WPT)
(NASDAQ: WPRT), the global leader in natural gas engines, today
announced that it has entered into a Supply Agreement with Cummins to
allow manufacturing of the Westport HD 15 litre engine in a Cummins
manufacturing facility in Jamestown, New York.
"The Supply Agreement helps accelerate our scalability and cost
reduction at over 1500 units per year," said Clark Quintin, President
of Westport HD. "At scale, Westport HD would be able to recognize the
sale of the engine in addition to on- and off-engine components
increasing revenue per system."
Westport has assured available, scalable and cost effective supply for
its 15L natural gas engines featuring Westport technology. The new HD
Supply Agreement provides Westport with the ability to have its
Westport technology-equipped heavy duty engines produced in a Cummins
manufacturing facility when a minimum threshold sales volume of at
least 1,500 engines in any 12-month period has been achieved by
Westport. The supply agreement term is for three years beginning from
the date the first Westport technology-equipped engine is shipped by
Cummins after Westport meets the minimum volume threshold. The term
automatically renews if the threshold volumes continue to be achieved.
If Cummins does not ship a Westport technology-equipped engine within
the next five years, the agreement will terminate.
About Westport Innovations Inc.
Westport Innovations Inc. is a leading global supplier of proprietary
solutions that allow engines to operate on clean-burning fuels such as
compressed natural gas (CNG), liquefied natural gas (LNG), hydrogen,
and renewable natural gas (RNG) fuels such as landfill gas and help
reduce greenhouse gas emissions (GHG). Westport technology offers
advanced LNG fueling systems with direct injection natural gas engine
technology for heavy-duty vehicles such as highway trucks and off-road
applications such as mining and rail. Westport's joint venture with
Cummins Inc., Cummins Westport Inc. designs, engineers and markets
spark-ignited natural gas engines for North American urban work
vehicles such as buses and refuse trucks. Westport LD division is one
of the global leaders for natural gas and LPG fuel in passenger cars,
light-duty trucks and industrial applications such as forklifts.