Spectra Premium To Produce Steel Fuel Tanks For Certain DaimlerChrysler Model

Autoparts Report, Dec 4, 2002

Spectra Premium Industries Inc. said it was awarded another OEM contract for the manufacture of steel fuel tanks. Spectra Premium, in partnership with Kautex, a leading manufacturer of fuel systems, said it was awarded a contract to develop and manufacture steel fuel tanks for the "PT Cruiser" platform of years 2005 - 2009 for the Californian market.

The value of the contract may reach $12 million, the company said. Initial deliveries are expected for the month of July 2004. "We are honored to be involved in the production of the popular PT Cruiser and this first contract involving DaimlerChrysler's vehicles clearly confirms our ability to expand our customer base at the OEM level, as we announced earlier this year three contracts involving another of the big three automobile manufacturers," said Jacques Mombleau, President and Chief Executive Officer of Spectra Premium.

This is the second contract awarded to Spectra Premium for the manufacture of steel fuel tanks to be installed on vehicles exclusively destined to the California market. This production for California is within the scope of the PZEV program (partial zero emission vehicle) aimed at reducing air pollution caused by vehicles in accordance to the regulations established by the California Air Resources Board, which are the most stringent in North America.

The potential commercial value of all OEM contracts signed to date this year lies between $55 and $70 million, representing from $17 to $22 million on an annual basis, the company said. These contracts will start generating revenues in 2003, the company added.