VANCOUVER, BC, March 11,
2024 /CNW/ - Westport Fuel Systems Inc. (TSX: WPRT)
(NASDAQ: WPRT) ("Westport" or the "Company"), a leading supplier of
advanced alternative fuel delivery systems and components for the
global transportation industry, is pleased to announce the
signing of an investment agreement to establish the previously
announced joint venture with Volvo Group to accelerate the
commercialization and global adoption of Westport's HPDI™ fuel system technology for
long-haul and off-road applications (the "JV"). The closing of
the JV is subject to certain closing conditions, including
regulatory and government approvals. It is anticipated that
the JV will become operational following the formal closing which
is currently expected to occur in the second quarter of 2024.
"We are excited to execute this agreement and build on our
success with the Volvo Group and our HPDI™ technology. We are
motivated to keep innovating and investing in strong business
relationships with leading organizations that share our goals, of
which Volvo Group is certainly one," said Dan Sceli, CEO of Westport Fuel Systems Inc.
"Powered by our shared vision for a cleaner tomorrow, we look
forward to further collaboration and providing real solutions to
decarbonize the long-haul and off-road transport sectors," added
Mr. Sceli.
As previously announced, Westport will contribute certain HPDI™ assets
and opportunities, including related fixed assets, intellectual
property, and business, into the JV. Volvo Group will acquire a 45%
interest in the JV for the sum of approximately US$28 million, payable upon closing, plus up to
an additional US$45 million as an
earn out depending on the subsequent performance of the JV.
About Westport Fuel
Systems
At Westport, we are driving
innovation to power a cleaner tomorrow. We are a leading supplier
of advanced fuel delivery components and systems for clean,
low-carbon fuels such as natural gas, renewable natural gas,
propane, and hydrogen to the global transportation industry. Our
technology delivers the performance and fuel efficiency required by
transportation applications and the environmental benefits that
address climate change and urban air quality challenges.
Headquartered in Vancouver,
Canada, with operations in Europe, Asia,
North America, and South America, we serve our customers in more
than 70 countries with leading global transportation brands. At
Westport, we think ahead. For more
information, visit www.wfsinc.com.
About HPDI
HPDI is a cost-effective way to reduce CO2 in
long-haul trucking and other high-load and off-road applications.
Westport's HPDI fuel system is a
complete system offering OEMs the flexibility to differentiate
their biogas, natural gas, hydrogen, and other fuel product lines
easily while also maintaining maximum commonality with their
conventional diesel-fueled products. Using HPDI, greenhouse
gas-emitting fuels like diesel can be replaced with carbon-neutral
or zero-carbon fuels like biogas or hydrogen while maintaining the
durability, affordability, efficiency, and performance
characteristics that have come to be associated with
diesel. For additional information on HPDI please visit
https://wfsinc.com/technology/hpdi.
Forward-Looking
Statements:
This press release contains forward-looking statements,
including statements regarding the closing of, and timing for
closing of, the JV and the expected sum payable by Volvo in
connection with its acquisition of a 45% interest in the JV.
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 completion and satisfaction of
all conditions to closing set out in the investment agreement,
governmental policies, regulation and approval, the achievement of
the performance criteria required for the earn out described above,
purchase price adjustments contained in the investment agreement,
the demand for HPDI systems, as well as other risk factors and
assumptions that may affect our actual results, performance, or
achievements, as 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
referenced in this press release are not incorporated by reference
herein.
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SOURCE Westport Fuel Systems Inc.