Power Solutions International, Inc. (PSI) announced a multi-year supply agreement with NACCO Materials Handling Group, Inc. ("NMHG"), the global forklift manufacturer. PSI will supply NMHG with alternatively-fueled power systems.
The NMHG agreement marks the launch of PSI's long-term 2.0-liter and 2.4-liter power system program, which has been in progress for two years. PSI's new engine displacements provide more power and torque and improved fuel efficiency at lower speeds. In late 2012, PSI earned US Environmental Protection Agency and California Air Resources Board certification for both systems for large spark-ignited (LSI) engines for mobile applications running on propane and natural gas.
In addition to the 2.0-liter and 2.4-liter power systems, PSI will also continue to supply 4.3-liter and 5.7-liter power systems to NMHG, making PSI a supplier of internal combustion engines for NMHG's 1-ton to 8-ton forklift applications. PSI specifically designed all four systems to run on propane and collaborated with NMHG on development of a newly certified compressed natural gas system.
"Earning NMHG's long-term business marks a key milestone for PSI. Throughout this partnership, we have worked hard to exceed NMHG's expectations and this new agreement recognizes that effort," said PSI President and CEO Gary Winemaster. "It is a significant validation for our capabilities and valued partnership."
NMHG provides the strategic leadership and global support behind Hyster® and Yale® lift trucks, both of which are market leaders in the Americas and worldwide. NMHG's product portfolio covers a wide range of end-user applications in more than 700 industries. NMHG is a wholly owned subsidiary of Hyster-Yale Materials Handling, Inc. (NYSE:HY). Hyster-Yale Materials Handling and its subsidiaries, headquartered in Cleveland, Ohio, employ approximately 5,300 people worldwide.
The new agreement greatly expands the partnership between PSI and NMHG, which began in 2011 when both companies collaborated on a 4.3-liter engine re-power project. For that project, PSI re-designed precisely calibrated replacement engines in an abbreviated three-month period. The results earned PSI the NMHG Excellence in Performance Award for going "above and beyond expectations." The new NMHG deal puts PSI on target to reach its goals in 2014, making the company one of the top producers of water-cooled alternative-fueled engines in the world.
PSI will manufacture the power systems in its Wood Dale, IL facility in the US. However, production will likely expand in the future to the company's new facilities in Dalian, China as needs arise to best serve the extended global footprints of both NMHG and PSI.