CHILLIWACK, British Columbia--(BUSINESS WIRE)--IMW Industries, Ltd., a wholly-owned subsidiary of Clean Energy Fuels Corp., (NASDAQ: CLNE) today announced an exclusive distribution and customer care agreement with Russian Machines Corporation (RM), part of the Basic Element Group. Under the agreement, RM is named the exclusive distributor of IMW compressors, compressed natural gas (CNG) filling solutions, parts, and sole provider of maintenance and service within the Russian Federation. The agreement supports the May 2013 Russian decree 767-p to convert 50 percent of public transit and other vehicles to natural gas fuel by 2020 in cities with a population over one million.
“The Russian CNG vehicle market holds tremendous potential and the market for quality compressor equipment is expected to rapidly increase,” said Andrew J. Littlefair, president and CEO of Clean Energy. “As reported by Reuters in May 2013, Russian Prime Minister Dmitry Medvedev’s May decree underscores the economic and environmental benefits a vibrant Russian CNG vehicle market would represent and we’re eager to help this market succeed.”
RM’s GAZ Group is the leading company in Russia for the manufacturing of commercial vehicles, such as buses and light commercial vehicles, powered by gas fuel including liquefied petroleum gas (LPG) and CNG. GAZ Group has approximately 65 percent of the bus manufacturing market in Russia. In 2013, GAZ Group launched production of PAZ-3204-4238 and KAVZ natural gas buses and produced a pilot batch of pre-serial bi-fuel Gazelle BUSINESS LCVs which run on CNG and gasoline.
“These agreements are the first steps toward mutually-beneficial synergies in the introduction of CNG as a motor fuel in Russia and surrounding markets,” said Manfred Eibeck, chief executive officer of Russian Machines. “Russia holds the largest natural gas reserves in the world, yet only has approximately 200 natural gas fueling stations and 100,000 natural gas vehicles. This project will help bring state-of-the-art CNG fueling solutions and localized hi-tech production to Russia.”
RM has also been named among the distributors of CNG services in numerous surrounding markets such as Ukraine, Belorussia, Kazakhstan, Armenia, Turkmenistan and Uzbekistan. IMW is active in 26 countries such as China where a recent agreement with China Gas was reached to supply up to 416 compressors for the construction of 310 CNG stations.
About IMW Industries
IMW Industries is the largest sole manufacturer of non-lubricated natural gas compressors and related technologies for natural gas fueling applications in the world. IMW’s products are manufactured in Chilliwack, British Columbia, Ferndale, Washington, and Shanghai, China, and are utilized at private and public access fueling stations, as virtual pipelines and in industrial gas solutions. Headquartered in Chilliwack, British Columbia, IMW is a wholly-owned subsidiary of Clean Energy Fuels Corp. (Nasdaq: CLNE), the largest provider of natural gas fuel for transportation in North America. For more information, visit www.imw.ca.
About Russian Machines Corporation
RM CNG is 100% Daughter Company of Russian Machines (www.rm.ru) – a major Russian diversified corporation, part of Basic Element Group. Russian Machines comprises industrial and engineering assets in such industries, as automotive OEM, automotive components, railroad equipment engineering, aircraft assembly and service, production of agricultural machinery and road construction equipment. Russian Machines production activities are based in the key 12 regions of the Russian Federation.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks, uncertainties and assumptions, including statements about the market for CNG vehicles and compressors in Russia and the benefits of natural gas. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including, but not limited to, failure by Russian Machines to purchase compressors and related CNG fueling infrastructure equipment from IMW. The forward-looking statements made herein speak only as of the date of this press release and, unless otherwise required by law, the Company undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Additionally, the reports and other documents the Company files with the SEC (available at www.sec.gov) contain risk factors, which may cause actual results to differ materially from the forward-looking statements contained in this news release.