SANTA ANA, Calif., Sept. 26, 2006 (PRIMEZONE) -- Fuel Systems Solutions, Inc. (Nasdaq:FSYS) today announced the market launch of a new Compressed Natural Gas (CNG) refueling station, with initial orders valued at approximately $1.5 million.
The company intends to open a dedicated 15,000-square foot CNG refueling station manufacturing facility located near its existing BRC Gas Equipment subsidiary in Cherasco, Italy in mid-October 2006. The company expects to produce and deliver 40 to 45 CNG refueling stations in 2007 -- representing revenues of approximately $6.0 to $7.0 million derived from models ranging in price from $80,000 to $400,000. Initial CNG charging station orders are from customers located in European and Asian countries.
"The introduction of a three-cylinder, W-shaped, CNG mechanical compressor, integrated by a hydraulic booster, is the result of a two-year program focused on developing a relatively simple and competitively priced product to address the rapidly growing market for CNG-powered vehicles. While initial revenue targets are modest, the introduction of a CNG refueling station complements the company's leadership position within the alternative fuels market and its continued focus on developing innovative solutions to address escalating oil prices, energy security and clean air solutions on a global basis," said Mariano Costamagna, president and chief executive officer of Fuel Systems Solutions.
He noted that the company's new product line was developed in-house at the company's Italian facility and includes several models of CNG refueling stations -- ranging in flow capacity per unit from 200 nm3/h to 2,000 nm3/h. The refueling stations were designed to fully satisfy the regulatory requirements of many countries worldwide.
According to the International Association for Natural Gas Vehicles (IANGV), the current estimated market for CNG refueling stations is approximately $400 million. The association estimates there are currently approximately 4.6 million CNG-vehicles in operation worldwide, with 1.5 million vehicles in Argentina; 1.0 million in Brazil; 700,000 in Pakistan; 400,000 in Italy; 230,000 in India; 130,000 in the United States; 100,000 in China; 65,000 in Egypt; and 30,000 in Germany.
Costamagna added that the decision to utilize CNG (primarily methane) or LPG (Liquefied Petroleum Gas), a mixture of propane and butane, is influenced by a variety of factors -- including cost, available supply of the fuel source within a particular country, infrastructure, and the required driving range between refueling.
He noted that Fuel Systems Solutions manufactures systems and components for vehicles to operate on either CNG or LPG fuel. The Italian association Consorzio Ecogas estimates that there are approximately 1.4 million LPG-powered vehicles and 400,000 CNG-powered vehicles in operation in Italy today.
Costamagna added that the company's operation in Cherasco, Italy is currently capable of converting approximately 90 vehicles per day to a CNG- or LPG-powered system. These converted "delayed" OEM models include Chevrolet, Subaru, Citroen and Mitsubishi.
Fuel Systems Solutions is a holding company currently comprised of two operating subsidiaries, IMPCO Technologies and BRC Gas Equipment. Additional information is available at www.fuelsystemssolutions.com. IMPCO designs, manufactures, markets and supplies advanced products and systems to enable internal combustion engines to run on clean burning gaseous fuels such as natural gas, propane and biogas. IMPCO is a leader in the heavy duty, industrial, power generation and stationary engines sectors. Headquartered in Santa Ana, California, IMPCO has offices throughout Asia, Europe, Australia and North America. Additional information is available at www.impcotechnologies.com. BRC produces a complete range of systems for converting vehicles to gaseous fuel to meet market requirements. BRC is a leader in the light duty and automobile alternative fuel sectors and has established alliances with several major automobile manufacturers for OEM projects. Headquartered in Cherasco, Italy, BRC has offices throughout Asia, Europe and South America. Additional information is available at BRC's web site, http://www.brc.it.
Some matters discussed in this press release are forward-looking statements that involve risks and uncertainties. Actual results could differ materially from those discussed in any forward-looking statement. Those forward looking statements include statements relating to the number of expected CNG refueling stations in 2007, the expected pricing of those refueling stations, the estimated $6.0 to $7.0 million revenues associated with such refueling stations, the expected ability to capitalize on opportunities related to its new CNG charging station products and the expected market for CNG and LPG vehicles. Factors that could cause or contribute to such differences between our expected future results and actual results include, but are not limited to, prevailing market and global economic conditions; changes in environmental regulations that impact the demand for the company's products; the company's ability to design and market advanced fuel metering, fuel storage and electronic control products; the company's ability to meet OEM specifications; and the level and success of the company's development programs with OEMs. Readers also should consider the risk factors set forth in the company's reports filed with the Securities and Exchange Commission, including, but not limited to, those contained in "Management's Discussion & Analysis of Financial Condition and Results of Operation - Risk Factors" section of the company's Quarterly Report on Form 10-Q, for the quarter ended June 30, 2006. The company does not undertake to update or revise any of its forward-looking statements even if experience or future changes show that the indicated results or events will not be realized.