Impco inks four gas engine contracts: emissions approval, MCFA, NAACO and Hyundai deals highlight lead up to LSI regs - Impco Technologies Inc. contracts for industrial engines and large spark-ignited with Mitsubishi Caterpillar Forklift America Inc., NACCO Materials Handling Group Inc., and Hyundai Heavy Industries Company Ltd

Diesel Progress North American Edition, March, 2004 by Mike Osenga

As of Jan. 1, 2004, LSI (large spark-ignited) nonroad, spark-ignition engines began its first tier of EPA exhaust emissions regulations. A second, more stringent set of LSI regulations are scheduled for 2007.

The engines involved are over 19 kW and certified for operation on LNG, gasoline, or dual fuel and must be certified on a yearly basis and when new product families are developed. Applications are primarily sweepers, forklifts, aerial lifts, and other mobile equipment.

One of the key aspects of the LSI regulation is determining the manufacturer of record (MOR), as in almost all cases the engine and fuel system are manufactured by different companies. Determining who is responsible for the emissions related warranties and liabilities, is a key strategic decision as manufacturers begin building equipment requiring these certified engines.

In the waning days of last year leading up to the implementation of the regulation, many of the suppliers to OEMs in this market segment moved aggressively in signing agreements and alliances to meet the specific needs created by the LSI standards. Among the most active was Impco Technologies Inc., Cerritos, Calif., which made four major announcements relating to the LSI markets.

First, Impco said that it had been granted emission approval for the General Motors 1.6 L industrial engine for off highway mobile use for 2004. The CARB Executive Order and the EPA approval states that the General Motors 1.6 L engine equipped with propane and gasoline emission control systems produced by Impco are certified fur use by original equipment manufacturers in meeting the LSI regulations. This was followed by a similar Executive Order for GM's 3.0 L and GM's 4.3 L engines.

Impco followed that with the announcement that Mitsubishi Caterpillar Forklift America Inc. (MCFA) selected Impco to supply emission certified engines and its Spectrum fuel systems as part of a multiyear supply agreement. As part of this, Impco said it becomes the MOR for Mitsubishi's 4G63 and 4G64 engines with the Spectrum fuel system, used in these forklifts.

Impco then announced a three-year agreement with NACCO Materials Handling Group (NMHG) to supply NMHG with emission compliant engines for Hyster and Yale industrial forklifts. The value of that supply agreement is expected to exceed $25 million in the first year, Impco said.

Finally, Impco sidled a deal with Korea's Hyundai Heavy, Industries (HHI) that establishes Impco as the supplier of certified engines with Spectrum fuel systems beginning in 2004. As part of the agreement, Impco will become the MOR for HHI's North American requirements necessary to meet the new EPA emission regulation. The two companies have also agreed to formalize a joint development agreement for further off-highway ventures of mutual interest.