IMPCO Purchases Canadian Tank Manufacturer Assets; Positions Company as First Fuel Systems Supplier With Tank Technology
16 December 1997
IMPCO Purchases Canadian Tank Manufacturer Assets; Positions Company as First Fuel Systems Supplier With Tank Technology
CERRITOS, Calif., Dec. 16 -- IMPCO Technologies, Inc.
(Nasdaq: IMCO, IMCOW) today announced that it has reached an agreement between
the bankruptcy trustee for EDO Canada, Ltd., a former leading manufacturer of
storage tanks for natural gas vehicles, and Alternate Fuel Systems (AFS)
whereby AFS has withdrawn its appeal and the bankruptcy trustee has sold the
EDO assets to IMPCO. The assets consist of certain development, testing,
quality control and manufacturing equipment of EDO Canada, Ltd. IMPCO and AFS
have an agreement on joint use of EDO's patents.
The acquisition positions IMPCO as the world's first alternative fuel
systems supplier offering tank technology. "With natural gas vehicle tanks
currently ranging from $1,000-$3,000 and worldwide demand for tanks expected
to exceed 2 million units in the year 2000, IMPCO will be uniquely positioned
to capitalize on both increased demand for alternative fuel systems, as well
as for fuel tanks," said Robert M. Stemmler, IMPCO's president and chief
executive officer.
"IMPCO's acquisition of EDO's tank technology and equipment will extend
our company's capabilities from tank testing and research and development into
the next generation of fuel storage systems," noted Syed Hussain, vice
president of IMPCO's Technology and Automotive OEM division. "It is also a
logical extension of our core business of designing and developing alternative
fuel systems," he added.
Hussain noted that IMPCO will be the first company in the world to have
fuel systems, fuel storage, vehicle engineering and testing capabilities all
in-house.
EDO Canada, which ceased operations in May, 1997, had manufactured ultra-
light composite tanks. Composite tanks have become increasingly popular in
the natural gas vehicle marketplace because of their light weight and
versatility.
In vehicles utilizing natural gas as fuel, Hussain explained, the gas is
stored in a highly compressed form in pressure vessels. "These pressure
vessels tend to be heavy and expensive, and make up a large portion of the
costs associated with manufacturing an OEM natural gas vehicle. Our goal will
be to develop state-of-the-art tank technology aimed at alleviating these and
related problems."
IMPCO said that it will not sell or continue production of the EDO
"LiteRider" composite tank product line. Instead, the company plans to
develop carbon fiber reinforced pressure vessel technology with the long-term
goal of creating the next generation fuel storage systems that are
significantly lighter, less expensive and safer than those currently
available.
Development of fuel storage technology in-house is an important component
of IMPCO's long-term global strategy to be the premier Tier 1 component
supplier to automotive original equipment manufacturers," said Hussain.
"IMPCO is committed to serving the natural gas vehicle industry, and will
continue to work to enhance vehicle safety as well as reduce the costs
associated with carbon fiber-based fuel storage technology."
Hussain added that, after extensive testing, General Motors (GM) recently
selected carbon fiber reinforced tanks for many of its natural gas vehicles.
IMPCO is currently the exclusive supplier of natural gas vehicle fuel systems
to GM.
IMPCO Technologies, Inc. sells alternative fuel products and services
worldwide.
Headquartered in Cerritos, CA, the company has additional facilities in
Irvine, CA; Detroit, MI; Seattle, WA; Mt. Pleasant, IA; Mexico, Australia, the
Netherlands, France, Germany and the United Kingdom. IMPCO is a market leader
in the Original Equipment Manufacturer (OEM) market and aftermarket for
gaseous fuel management systems and components that allow internal combustion
engines to operate on clean-burning gaseous fuels such as propane and natural
gas. IMPCO provides conversion systems for motor vehicles, forklifts, other
material handling equipment, and small portable to large stationary engines.
Certain statements contained in this press release contain forward looking
information that is subject to risks and uncertainties which could cause
actual results to differ materially from those projected or implied. Such
risks and uncertainties include without limitation uncertainties regarding
growth of the alternative fuels market, competition, the company's ability to
design and market new fuel management products and the company's ability to
meet Original Equipment Manufacturer (OEM) specifications, as well as other
risks, factors and uncertainties described in the company's 1997 Annual Report
on Form 10-K and other reports filed from time to time with the Securities and
Exchange Commission. The company undertakes no obligation to publicly release
the result of any revisions to forward-looking statements which may be made to
reflect events and circumstances after the date hereof or to reflect the
occurrence of unanticipated events.
SOURCE IMPCO Technologies, Inc.
