Bloomberg News

Westport Rises on Caterpillar Venture: Vancouver Mover

June 05, 2012

Westport Innovations Inc. (WPT), a developer of natural-gas engines, climbed the most in more than three years after unveiling an agreement with Caterpillar Inc. (CAT:US) to develop fuel systems for off-road vehicles.

Westport, based in Vancouver, rose (WPRT:US) 22 percent to close at C$28.17 in Toronto, the biggest increase since November 2008. The shares have declined 17 percent this year.

Cooperation with Peoria, Illinois-based Caterpillar will initially focus on development of natural-gas engines used in mining trucks and locomotives and the possible use of Westport’s High Pressure Direct Injection technology, Westport said today in a statement. Caterpillar, the world’s largest maker of construction and mining equipment, will fund development under the agreement, Westport said.

“The substantial price difference between natural gas and diesel fuel is resulting in a strong financial incentive to enable off-road applications to take advantage of low natural gas energy costs without sacrificing operational performance,” Westport said in the statement.

To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net


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Companies Mentioned

  • CAT
    (Caterpillar Inc)
    • $105.04 USD
    • -3.34
    • -3.18%
  • WPRT
    (Westport Innovations Inc)
    • $17.32 USD
    • -0.26
    • -1.5%
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