Westport Fuel Systems Inc. has signed a non-binding Memorandum of Understanding (MOU) with Weichai Power Co., Ltd. at a signing ceremony hosted by Tan Xuguang, Chairman and CEO of Weichai Holding Group Co., Ltd. in Jinan, Shandong Province, China. This MOU sets the framework for finalizing the development, marketing, and commercialization of the Westport high pressure direct injection (Westport™ HPDI) technology in China.
The MOU states that Westport Fuel Systems will provide support for the Westport™ HPDI development activities to meet China VI emissions standards and will supply certain components. The parties are expected to enter into a definitive agreement in early 2018.
Moreover, Westport Fuel Systems and Canada’s export credit agency EDC have recently signed a US$20 million secured term loan agreement to support the commercial launch of the Westport™ HPDI 2.0 program. The loan from EDC is a secured term loan that matures on December 31, 2021, repayable in quarterly installments that increase annually, and with an initial interest rate of 9% plus fees, with the rate reducing to 6% upon achieving certain milestones. Funding of the loan is expected in the coming weeks.
“We have begun the commercialization of the Westport™ HPDI 2.0 technology and expect to ramp up production in 2018,” stated Ashoka Achuthan, Chief Financial Officer of Westport Fuel Systems. “As a made-in-Canada clean technology company, we are pleased to have EDC as a partner.”
Source: Westport Fuel Systems