On July16, 2008, Weichai Power, China s largest heavy duty engine manufacturer, announced that it has reached a joint venture agreement with Westport Innovations Inc. (TSX:WPT), a global leader in alternative fuel, low-emissions transportation technologies, and Hong Kong Peterson (CNG) Equipment Limited. The new entity, Weichai Westport Inc. (WWI), will research, develop, design, manufacture, market, distribute and sell advanced, alternative fuel engines (and relevant parts and kits) for use in automobiles, heavy duty trucks, power generation and shipping applications.
We are working with the largest heavy duty engine manufacturer in China where over 450,000 Heavy Duty trucks are introduced onto Chinese highways every year, said David Demers, CEO at Westport Innovations. Our High Pressure Direct Injection (HPDI) LNG fuel system technology provides a clean, low-emission solution to address a burgeoning market opportunity and the pressing need in China and Asia to reduce high emissions in major cities.
With over 11% of the global heavy duty engine market share, Weichai is not only a strong partner for the Chinese market, but a greater partner in global expansion of low-emission, alternative fuel engines.
The rapid growth in China for energy, especially in the transport sector, is creating a strong demand for newer, cleaner fuels in China such as natural gas. China has a growing reserve of natural gas and is in various stages of reviewing and approving a number of new LNG import terminals to be constructed along its eastern shore.
Transitioning natural gas from power generation to transportation frees up increasingly expensive oil based fuels for other applications and provides an economic advantage to the vehicle owner where natural gas is less expensive than diesel on a per unit of energy basis. According to The National Clean Vehicle Productivity Promotion in China, there are over 185,000 Natural Gas Vehicles(NGV) in China and the fueling infrastructure required to fuel these vehicles is growing quickly.
Adding to the scope of the joint venture, WWI will provide ancillary services including inventory, warehousing, training, applications engineering, sales promotion, technology consulting, instalment, maintenance and after sale service.
As a leader in one of the world s largest heavy duty truck markets, this partnership will help us expand into one of the fastest growing market segments with innovative, clean technology, said Mr. Tan Xuguang, Chairman and CEO of Weichai Power. Our proven ability to develop, manufacture and sell heavy duty engines combined with Westport s state of the art combustion technology will help launching a clean, low-emission heavy duty LNG fueled engine in China in the shortest possible time.
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 biofuels such as landfill gas. Cummins Westport Inc., Westport s joint venture with Cummins Inc., manufactures and sells the world s broadest range of low-emissions alternative fuel engines for commercial transportation applications such as trucks and buses. BTIC Westport Inc., Westport s joint venture with Beijing Tianhai Industry Co. Ltd., manufactures and sells LNG fuel tanks for vehicles. www.westport.com
About Weichai Power
Weichai is the biggest powertrain manufacturer and owns the most integrated heavy-duty vehicle value chain in China, including the manufacturing of the engine, gearbox, axle, vehicle and other vehicle related parts. Weichai has over 1,000 models of advanced diesel engine products, which are widely used on heavy-duty trucks, large buses, construction machinery, marine vessels and power generation.
Weichai reports a 36% share of Chinese heavy-duty vehicle market and more than 80% share of the over 5-ton construction machinery market. Weichai is one of the top engine suppliers in the world with annual sales of 300,000 engines. In particular, the WD series and WP Landking series of heavy-duty, high-speed engines developed and manufactured by Weichai are appreciated by consumers due to their high performance, reliability and economic benefits.
Weichai Power is a public company listed on the Hongkong Stock Exchange and Shenzhen Stock Exchange in China. Weichai has more than 2,000 authorized maintenance centers among China, which supplies convenient and quick service for customers.
Note: This document contains forward-looking statements about Westport s business, operations, technology development or the environment in which it operates, which are based on Weichai Power s estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, or are beyond Weichai Power s control.
Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Weichai Power disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(www.westport.com)
