Westport Fuel Systems Inc. (“
Westport Fuel
Systems”) (TSX:WPRT / Nasdaq:WPRT) announced today that it
has entered into definitive development and supply agreements with
Weichai Westport Inc. (“
WWI”) to develop, market,
and commercialize a heavy-duty, natural gas engine featuring the
Westport HPDI 2.0™ technology, based on one of Weichai Power Co.,
Ltd.’s (“
Weichai Power”) heavy-duty engine
platforms. Weichai Power and WWI are affiliates of the
Weichai Holding Group Co., Ltd (“
Weichai”).
Under the new development program for the Chinese market,
Westport Fuel Systems will support the adaptation of the Westport
HPDI 2.0 technology onto one of Weichai Power's heavy-duty engine
platforms, building on the years of experience WWI has with
Westport HPDI technology. The new natural gas engine will be
certified to meet China VI emissions standards and is expected to
be launched in the second half of 2019.
Once in production, Westport Fuel Systems will supply critical
HPDI 2.0 system components to WWI, each of which is required for
every HPDI 2.0 engine sold by WWI. WWI has committed to
purchase HPDI 2.0 system components required for a minimum of
18,000 HPDI 2.0 engines between the launch date and the end of
2023. In addition, Westport Fuel Systems will receive a
royalty payment from WWI for each engine sold in consideration of
the HPDI license rights provided to WWI. WWI will market and
sell the heavy-duty natural gas engines with the Westport HPDI 2.0
technology to various truck original equipment manufacturers
(“OEMs”).
“We have achieved another milestone by fully and formally
supporting our partner, Weichai, a dominant engine producer in
China, in the development of clean heavy-duty vehicles to help
reduce greenhouse gas (“GHG”) emissions in China,”
said Nancy Gougarty, Chief Executive Officer of Westport Fuel
Systems. “It really is a continuation of the successful
relationship between Weichai and Westport Fuel Systems. These
agreements demonstrate the viability of our market-ready, clean
technology solutions; secure the value of our Westport HPDI
technology; and provide protection to our intellectual property.
With WWI’s committed volume, this will extend our first mover
advantage and allow us to access further economies of scale with
our suppliers.”
“As the demand for natural gas vehicles has grown significantly
over the years, the demand for better performing, cleaner, and more
efficient engines has also increased,” said Dr. Tan Xuguang,
Chairman of Weichai. “Westport HPDI 2.0 technology provides
the only proven and commercially available solution that can
deliver on all of these demands and provide up to 20% GHG
reduction, while using a more economical fuel. This, combined
with the extensive liquefied natural gas (“LNG”)
fueling infrastructure network in China, will provide the domestic
Chinese market with a viable clean technology solution that we
believe will become the leading powertrain solution in the world
for heavy-duty long-haul trucks.”
Westport Fuel Systems will supply the HPDI 2.0 system components
on a limited exclusivity basis. Under the terms of the
agreement, Westport Fuel Systems is precluded from selling these
system components for use in commercially available engines sold in
China with the exceptions of certain global OEMs and their
affiliates, for a minimum period of five years from the date of
execution of the development agreement, subject to WWI meeting
defined volume targets. Other key terms of the agreements,
such as pricing, have not been disclosed for competitive reasons or
due to confidentiality restrictions.
About Weichai Holding Group Co.,
Ltd.Founded in 1946, Weichai Group is one of the
biggest automobile and equipment manufacturing groups regarding
comprehensive strength in China. The group has achieved 220.7
billion RMB sales income in 2017. It possesses six business
platforms, namely powertrain, intelligent logistics, automotive,
construction machinery, luxury yacht and finance & service.
Weichai Group is an interdisciplinary, multi-industry international
company, with branch companies locating in Europe, North America
and Southeast Asia, including Weichai Power (SZ000338; HK2338),
Weichai Heavy Machinery (SZ000880), Yaxing Motor Coach (SH600213),
Moteurs Baudouin, Ferretti Group, Linde Hydraulics, and KION Group
AG (DE000KGX8881) which controls Dematic.
About Westport Fuel SystemsAt
Westport Fuel Systems, we are driving innovation to power a cleaner
tomorrow. We are inventors, engineers, manufacturers and suppliers
of advanced clean fuel systems and components that can change the
way the world moves. Our technology delivers performance, fuel
efficiency and environmental benefits to address the challenges of
global climate change and urban air quality. Headquartered in
Vancouver, Canada, we serve our customers in more than 70 countries
with leading global transportation brands. At Westport Fuel
Systems, we think ahead. For more information, visit
www.wfsinc.com.
Note: This press release contains forward-looking statements,
including statements regarding the timing, launch, and completion
of the development of a Westport HPDI 2.0 system with
Weichai, the emission standard certification of such HPDI 2.0
system, the demand for our products (including HPDI 2.0 system
components), the future success of our business and technology
strategies, investment in new product and technology development
and otherwise, intentions of partners and potential customers, the
performance and competitiveness of Westport Fuel Systems' products
and expansion of product coverage, and future market opportunities.
These statements are neither promises nor guarantees, but involve
known and unknown risks and uncertainties and are based on both the
views of management and assumptions that may cause our actual
results, levels of activity, performance or achievements to be
materially different from any future results, levels of activities,
performance or achievements expressed in or implied by these
forward looking statements. These risks, uncertainties, and
assumptions include those related to our industry and products, the
general economy, governmental policies and regulation, technology
innovations, the availability and price of natural gas, global
government stimulus packages, the acceptance of and shift to
natural gas vehicles, the development of competing technologies,
our ability to adequately develop and deploy our technology, the
actions and determinations of our joint venture and development
partners, as well as other risk factors and assumptions that may
affect our actual results, performance or achievements or financial
position discussed in our most recent Annual Information Form and
other filings with securities regulators. Readers should not place
undue reliance on any such forward-looking statements, which speak
only as of the date they were made. We disclaim any obligation to
publicly update or revise such statements to reflect any change in
our expectations or in events, conditions or circumstances on which
any such statements may be based, or that may affect the likelihood
that actual results will differ from those set forth in these
forward looking statements except as required by National
Instrument 51-102. The contents of any website, RSS feed or twitter
account referenced in this press release are not incorporated by
reference herein.
Investor Inquiries: Caroline SawamotoSenior
Manager, Investor Relations & Communications Westport Fuel
SystemsT: +1 604-718-2046invest@wfsinc.com
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