Weichai Westport Inc. (WWI)—a joint venture agreement between Westport Innovations Inc., Weichai Power Co.,Ltd (HK:2338), and Hong Kong Peterson (CNG) Equipment Limited—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.
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 fuelling 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.
Under the terms of the 40-year joint venture agreement, Westport has a 35 per cent share with Weichai Power and Hong Kong Peterson holding 40 per cent and 25 per cent shares respectively.
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