VANCOUVER – Shares in Westport Innovations Inc. (TSX:WPT) climbed higher Tuesday after the natural gas engine technology firm changed terms of a joint venture with Cummins Inc.
The stock gained more than five per cent in initial trading on the Toronto Stock Exchange. Westport shares were up $ 1.04 or 2.3 per cent at $ 45.70 in morning trading.
The Vancouver-based company said late Monday that its Cummins Westport venture will narrow its focus on developing new fuel-efficient engines for North American customers.
Under an earlier deal, the 50-50 joint venture had exclusive global rights to design, engineer and sell mid-range natural gas engines based on Cummins diesel engines.
The new agreement also revises some of the economic terms of the earlier deal and clarifies what engines can be built by the joint venture.
In a separate statement, CWI announced a new 12-litre natural gas engine based on the Cummins ISX12 diesel engine that is expected to start production early next year. CWI will market the new engine in North America and Cummins will have the option of developing international versions.
Westport also said it has signed a deal with Cummins to allow manufacturing of the Westport HD 15-litre engine in a Cummins factory in Jamestown, N.Y.
Under the new joint venture agreement, Westport will appoint the president for the first three-year term, while the chairman will be Ed Pence, Cummins vice-president and general manager for its heavy duty engine business.
The joint venture, which will focus on engines between 5.9 litres through 12 litres, will run for 10 years.
Westport develops engines that operate on clean-burning fuels such as compressed natural gas, liquefied natural gas, hydrogen, and renewable natural gas fuels such as landfill gas.
Local news from metronews.ca/vancouver
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