Quantum to Expand Manufacturing Capacity for Lightweight Natural Gas Vehicle Storage Systems to Meet Strong Customer Demand - Doubling Production Capacity in California -- Secures Capital Lease Financing for Capacity Expansion --
LAKE FOREST, Calif., Nov. 9, 2012 /PRNewswire/ -- Quantum Fuel Systems Technologies Worldwide, Inc. (the "Company") (NASDAQ: QTWW), a global leader in natural gas, hybrid/electric and hydrogen vehicle technologies, today announced its plans to expand manufacturing capacity for its industry-leading lightweight, polymer-lined carbon composite natural gas on-board fuel storage tanks to meet the accelerating demand from North America's leading OEMs, fleets and system integrators. The Company's planned facility expansion is expected to double its current production capacity by setting up state-of-the art manufacturing lines at a 60,000 sq. ft. building adjacent to its existing 30,000 sq. ft. factory in Lake Forest, California. The combined 90,000 sq. ft. required for the planned expansion is currently under existing lease arrangements.
In connection with the planned expansion, Quantum also announced that it has closed on a $3.25 million capital lease financing arrangement with Amur Investment Company LLC, the proceeds of which will primarily be used to fund the purchase of new equipment related to the planned expansion.
The expansion has been initiated and is expected to provide additional capacity starting in the first quarter of calendar 2013 with continued incremental capacity coming on-line throughout the first six months of calendar 2013.
Quantum has previously announced a significant increase in new orders for its CNG fuel storage systems in 2012 compared to orders received during the same period in 2011 from leading natural gas vehicle system integrators and system developers for supplying its industry-leading, ultra-lightweight carbon composite compressed natural gas (CNG) storage tanks for a variety of transportation applications ranging from Class 1 to Class 8 natural gas trucks. Quantum has recently announced the roll-out of its new Q-Lite™ series of range-enhancing ultra-lightweight natural gas storage systems, aimed at creating sizeable new opportunities with the heavy duty long-haul and medium duty vehicle segments, among others."We are pleased to announce this production expansion plan for our existing Lake Forest, California facility and the non-dilutive equipment financing to begin this expansion," said Brian Olson, President and CEO of Quantum. "The broadening interest in natural gas has driven a significant increase in demand for Quantum's proven industry-leading, high capacity ultra light-weight natural gas vehicle fuel systems and we expect growth to continue in 2013 and beyond."
Quantum Fuel Systems Technologies Worldwide, Inc. is a leader in the development and production of advanced vehicle propulsion systems, fuel storage technologies, and alternative fuel vehicles. Quantum's portfolio of technologies includes electronic and software controls, hybrid electric drive systems, natural gas and hydrogen storage and metering systems and other alternative fuel technologies and solutions that enable fuel efficient, low emission, natural gas, hybrid, plug-in hybrid electric and fuel cell vehicles.
Quantum's powertrain engineering, system integration, vehicle manufacturing, and assembly capabilities provide fast-to-market solutions to support the production of natural gas, hybrid and plug-in hybrid, hydrogen-powered hybrid, fuel cell, and specialty vehicles. Quantum's customer base includes automotive OEMs, fleets, aerospace industry, military and other governmental agencies, and other strategic alliance partners. Quantum's wholly owned subsidiary, Schneider Power Inc., and affiliate, Asola Solarpower GmbH, complement Quantum's alternative and renewable energy presence through the development and ownership of wind and solar farms, and the manufacture of high efficiency solar modules for traditional and automotive applications.
Quantum is headquartered in Lake Forest, California, and has operations and affiliations in the USA, Canada, Germany and India.
About Amur Investment Company:
Amur Investment Company LLC (AIC) is a commercial finance company that acquires and leases portfolios of transportation, commercial or industrial equipment, and provides or acquires loans, or acquires other financial assets. AIC is a wholly owned subsidiary of Amur Capital Group ("Amur"). Amur is a management-owned asset management firm/merchant bank focused on transportation, commercial and financial assets in a broad range of industries. Amur invests seamlessly across loan and debt securities, along with investing in companies or co-investing with companies in physical assets. Amur also provides strategic advice, global solutions and flexibility for the companies it invests in/with via its investment banking/advisory arm."
Forward Looking Statements:
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements included in this report, other than those that are historical, are forward-looking statements and can generally be identified by words such as "may," "could," "will," "should," "assume," "expect," "anticipate," "plan," "intend," "believe," "predict," "estimate," "forecast," "outlook," "potential," or "continue," or the negative of these terms, and other comparable terminology. Various risks and other factors could cause actual results, and actual events that occur, to differ materially from those contemplated by the forward looking statements. Risk factors include the ability of Quantum to complete the expansion as planned, whether the planned expansion will result in the expected increase in production, whether the demand for our CNG products continues in the future and the levels we expect, whether we are able to maintain our competitive advantage in the marketplace, and the continued competitiveness of natural gas as an attractive alternative fuel. For additional risk factors, see the "Risk Factors" section contained in the Company's Annual Report on Form 10-KT and each subsequently filed Quarterly Report on Form 10-Q. The Company undertakes no obligation to update the information in this press release to reflect events or circumstances after the date hereof or to reflect the occurrence of anticipated or unanticipated events.
More information can be found about our products and services at http://www.qtww.com/ or you may contact:
Brion D. Tanous
Principal, CleanTech IR, Inc.
©2012 Quantum Fuel Systems Technologies Worldwide, Inc.
Advanced Technology Center
25242 Arctic Ocean Drive, Lake Forest, CA 92630
Phone 949-399-4500 Fax 949-399-4600
SOURCE Quantum Fuel Systems Technologies Worldwide, Inc.