VANCOUVER (AP) — Westport Innovations Inc. is opening a new $3-million assembly plant in B.C. to help meet the growing demand for its liquefied natural gas fuel systems and engine conversions, the company said Tuesday.
Mike Gallagher, Westport's president and chief operating officer, said employees will start moving into the new 20,000-square foot facility in about two weeks.
''For the first time we will be assembling in some volume here in British Columbia an array of LNG fuel systems which will include engines with our Wesport injectors as well as LNG tanks and pumps and full fuel systems,'' Gallagher said.
Truck maker Kenworth announced in January it will start production of Kenworth T800 LNG trucks at its facility in Renton, Wash. next year.
The company said the new plant will help increase production capacity of the company's liquefied natural gas fuel systems and engine conversions for delivery direct to the Kenworth plant.
Gallagher said the company would look to hire manufacturing engineers, technicians and others as the plant ramps ups production.
''We would expect the volume to be picking up in the second half of the year with hiring to go with that,'' he said.
Westport also reported Tuesday a third-quarter profit of $7.4 million, boosted by the sale of the company's stake in research spin-off Wild River Resources Ltd. and a third of its stake in natural gas firm Clean Energy.
Net income for the quarter ended Dec. 31 amounted to seven cents diluted, contrasting with a loss of $5.8 million or eight cents per share a year earlier.
The results include a $9.4-million gain on the sale of long-term investments including the sale of approximately 600,000 of Westport's two million shares of Clean Energy Fuels Corp. and the sale of substantially all of its shares of Wild River.
Quarterly revenues of $19.3 million were up 15 per cent.
Last fall that the Port of Los Angeles and South Coast Air Quality Management District approved funding for 158 trucks totalling $27.5 million.
The new plant comes as the company starts to gain momentum with its heavy-duty truck business.
So far, Westport has assembled 100 heavy-duty LNG trucks for Ports of Los Angeles and Long Beach and another 19 for other customers.
Westport and its partners are now awaiting execution of contracts and associated funding between the Ports and the drayage fleets.
And last week, Westport announced a deal to supply Wal-Mart Stores Inc. with four trucks fuelled by liquefied natural gas, in a pilot project designed to show the environmental benefits of
Westport's LNG systems.
The Vancouver maker of clean technology fuel systems said the four Peterbilt 386 trucks will be used at the giant U.S. retailer's distribution centre in Apple Valley, Calif.
On the Toronto stock market Tuesday morning, Westport shares were down seven cents at $2.87.
