Westport Fuel Systems Inc. is to sell an 11.7% interest in the Weichai Westport Inc. (WWI) joint venture to Weichai Holding Group Co., Ltd. (Weichai) and an additional undisclosed purchaser. The Company is supportive of Weichai’s goal to increase its majority ownership position in WWI and remains a committed partner in the joint venture, retaining a minority interest in WWI.
This transaction, which will generate gross proceeds of 48.2 million RMB (approximately USD 7.2 million), is consistent with the company’s focus on strengthening its liquidity position, Associated with the sale, Westport Fuel Systems will also receive a dividend payment of 23.8 million RMB (approximately USD 3.5 million) from the joint venture, generating total gross proceeds of 72.0 million RMB (approximately USD 10.7 million).
The company continues to advance development of its High Pressure Direct Injection 2.0 (Westport™ HPDI 2.0) products with WWI, with commercial launch in China planned for 2017. In addition, Westport Fuel Systems has signed a framework agreement with WWI for the supply of alternative fuel system components.
“China remains an important market for us and we are dedicated to supporting our OEM customers,” said Nancy Gougarty, CEO of Westport Fuel Systems. “There is increasing urgency around the globe to address urban air quality issues and natural gas fueled vehicles can play an integral role in reducing emissions. The WWI joint venture remains well positioned to support China’s transportation market and we continue to advance the commercialization of our HPDI technology in support of the heavy-duty sector. Our ongoing relationship with the joint venture will provide a strong foundation in support of our efforts to grow Westport’s presence in both these market segments. Further, this sale helps address our corporate goal of strengthening our balance sheet.”
Final release of all funds to Westport Fuel Systems remains subject to customary Chinese approval processes and foreign exchange.
Westport™ HPDI 2.0
Westport™ HPDI 2.0 is the only natural gas technology capable of delivering performance and fuel economy equivalent to that of current high performance diesel-fueled engines, while reducing greenhouse gas (GHG) emissions by 18% to 20%. This combination of high performance, high efficiency and low GHG emissions is increasingly critical for heavy-duty engines in demanding commercial applications.
(Source: Westport Fuel Systems Inc.)