Quantum Fuel Systems Technologies Worldwide Inc., a global leader in natural gas storage systems, integration and vehicle system technologies, has announced its strategic direction to service the heavy-duty OEM market segment, in addition to other market segments, with natural gas storage systems. The company recently announced a major long-term supply agreement with a major transportation company under which the company will supply compressed natural gas (CNG) fuel storage tanks and module systems. This new relationship is an early indicator of the company's ability to provide the industry with fully integrated systems and at the same time diversify its existing customer base by leveraging its core expertise in advanced tank technologies and systems integration and being a one-stop-shop for OEMs and fleets for complete CNG fuel systems. The company indicated that this strategy is the culmination of a careful and thought-out plan over the past several months and is based on the company's desired direction, feedback from market participants seeking lower cost solutions, the company's technology advantages, and experience and capabilities of its personnel.
The company has demonstrated its ability to develop cost-effective modules and systems around its industry-leading tank technology for various vehicle applications, including heavy-duty trucks. During 2013, Quantum introduced rail mounted storage systems for both medium- and heavy-duty trucks, and in March 2014 it introduced an innovative lightweight back-of-cab (BOC) storage system that was first showcased at a major truck exposition by Peterbilt. These adaptable fuel storage module systems provide exceptional cost, weight and capacity per DGE (Diesel Gallon Equivalent) advantages compared to other competitive products.
Based on these product introductions, the company has received strong interest for its BOC system and other derivative system configurations based on combining the company's rail mounted systems with its BOC system. The company is currently expanding its tank and CNG storage system production capacity for both rail mounted and BOC systems to meet third quarter production readiness. The company will continue to provide key customers pre-production units leading up to the meaningful production levels targeted in the second half of calendar year 2014. The company will also continue to leverage specific relationships to assemble and install these systems on vehicles in facilities and with companies already located next to OEM customers.
"We are currently positioned to take full advantage of our core strengths and provide complete fuel storage modules to the heavy-duty and medium-duty truck industry and provide exceptional value to our targeted customers," comments Brian Olson, President and CEO of Quantum. "We anticipate that the combination of our advanced tank technology and integration expertise, which we believe is unmatched in the industry, will drive significant levels of product orders from new customers in the coming months and that we are well positioned to be a significant supplier of fuel storage systems to the heavy-duty trucking industry."
The company further stated in response to a recent announcement by Agility Fuel Systems, that Agility has an existing purchase order in place with the company and both parties have communicated their intent to honor these arrangements and extend the purchase arrangement at least through December 31, 2014 to ensure uninterrupted deliveries to the existing customer base.
