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Landi Renzo and Clean Energy Combine Compressor Businesses

| November 27, 2017

Clean Energy

Landi Renzo S.p.A. and Clean Energy Fuels Corp. (Nasdaq: CLNE) announced that the two companies are combining their compressor manufacturing subsidiaries to form a new standalone company that will immediately become one of the leading suppliers of natural gas compressors and other related products.

Landi Renzo’s SAFE, with a strong presence in Europe and Asia, and Clean Energy Compression, which is well established in the North and South America markets, will combine manufacturing and support operations and equip an international sales team with an expanded line of quality compressors featuring the latest technologies.

Upon closing, which is anticipated before the end of the year, Landi Renzo will own 51% of the new company and take over operational management, while Clean Energy will retain a 49% ownership. Andrew J. Littlefair, President and CEO of Clean Energy, will serve as the chairman of the board. The combined company will be headquartered in San Giovanni Persiceto (BO), Italy, and retain Clean Energy’s manufacturing operation in Chilliwack, British Columbia, Canada.

“The world is rapidly waking up to the harmful impact that diesel is having on air quality,” said Cristiano Musi, who is currently Group CEO of Landi Renzo and will also be the CEO of the new company. “Natural gas is an obvious alternative for vehicles because it burns much cleaner, is plentiful around the world and there is a growing engine portfolio to choose from. This newly formed compressor company will be uniquely positioned to take advantage of the trend towards natural gas with a global footprint and a great product offering.”

“SAFE and Clean Energy Compression’s businesses when combined, establish a completely complementary structure in geography, expertise and highly competitive products,” said Littlefair. “Consolidating operations and corporate functions is expected to enable the new company to focus on manufacturing efficiencies with the best technologies and reduce redundant overhead, resulting in improved margins.”

The new company will attempt to meet the growing demand of transportation fleets that seek solutions to replace diesel. Here’s why it is so significant: Strict environmental policies are being adopted around the world to address air quality problems caused by polluting NOx emissions. Improved natural gas engine technology and a more abundant supply of renewable natural gas (RNG) allows some large vehicles to reduce their emissions by 90% and cut climate-changing greenhouse gases by 70% versus diesel.

Landi Renzo is the global leader in the LPG and Methane gas components and systems for motor vehicle sector. The Company is based in Cavriago (Reggio Emilia) and has over 60 years’ experience in the sector, and is renowned for the extent of it international activities in over 50 countries, with export sales of about 80%. Landi Renzo S.p.A. has been listed on the STAR segment of the MTA Market of Borsa Italiana since June 2007.

Clean Energy Fuels Corp. is the leading provider of natural gas fuel for transportation in North America. We build and operate CNG and LNG vehicle fueling stations; manufacture CNG and LNG equipment and technologies; and deliver more CNG and LNG vehicle fuel than any other company in the U.S.

Category: General Update, Green, News

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