Cummins, Westport Form Joint Venture

Cummins Inc of Columbus IN and Westport Innovations Inc of Vancouver, British Columbia, have formed a 50/50 joint venture to develop and market low-emissions, high-performance natural gas engines.

Under terms of the agreement, Westport will contribute its high-pressure direct injection (HPDI) technology and other proprietary natural gas technologies. Cummins will include its on-highway vehicle medium-duty spark-ignited natural gas engines and proprietary engine-related technologies for on-highway vehicles, industrial, and power generation applications. Cummins will manufacture the engines that will be distributed and serviced by the Cummins distribution system. The joint venture is based in Vancouver, with a board of directors consisting of three representatives from Cummins and three from Westport.

Through the 50/50 joint venture and related supply agreements, Cummins and Westport share equally in profits from products developed and sold by the joint venture. For the first three years of the joint venture, Westport will contribute capital that the joint venture may require and is prepared, under the agreement, to invest up to US $50 million over that period of time. Westport's existing technology development projects with other diesel engine manufacturers are not affected by the agreement with Cummins.

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