Winnipeg Free Press - PRINT EDITION
Posted: 02/8/2013 1:00 AM | Comments: 0
Winnipeg bus maker New Flyer Industries now has a firm contract in its hands for a mammoth order of 550 buses from the Los Angeles County Metropolitan Transportation Authority (LA Metro) and an option for another 350.
The five-year contract for up to 900 Xcelsior 40-foot heavy-duty compressed natural gas (CNG) buses could be worth as much as $500 million in revenue for the largest bus maker in North America over the next few years.
The LA Metro order is anticipated to begin production in the fourth quarter of 2013 and will be completely made and assembled at New Flyer of America's St. Cloud, Minn., manufacturing facility.
The news was part of a significant few weeks for the company.
Last month, it landed a $116-million investment for 20 per cent of the company from Brazilian bus maker Marcopolo S.A.
Between 1998 and 2001, New Flyer manufactured 466 CNG buses for LA Metro. It will be the first time New Flyer has built for Metro in more than 10 years and the first time the New Flyer Xcelsior model will be included in LA Metro's active transit fleet of more than 2,200 buses.
"We are thrilled to be awarded the Metro contract," said Paul Soubry, president and CEO of New Flyer. "With our last Metro build more than 10 years ago, we're excited to have this opportunity to once again build, deliver our best-in-class Xcelsior and provide service and support for the life of Metro's buses."
On Jan. 8, 2013, LA Metro issued New Flyer a notice of intent to award this contract but advised that its safety committee and board of directors approvals had to be achieved before a contact could be issued.
At the end of the third quarter of 2012, New Flyer's backlog totalled 6,206 equivalent units (EQs) with a total value of $2.64 billion. An equivalent unit gives an approximate measure of the size of a bus, and a longer-than-typical 40-foot bus represents two units.
Since then, the company has announced new orders and options totalling about 1,500 EQs.
That includes a contract to build up to 90 heavy-duty diesel buses for the Milwaukee County transit system, also announced Thursday.
That order calls for New Flyer to provide 55 of the Xcelsior buses this year.
There's an option for Milwaukee to purchase another 35.
New Flyer has provided almost 700 buses to the county in the last 16 years.
Republished from the Winnipeg Free Press print edition February 8, 2013 B10
Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.
Having problems with the form?Contact Us Directly
Mexican mining firm complains about probe of spill
The stories they could tell
Tax pain? There's an app for that
Vancouver port authority OKs coal facility
Man in mystery selfie comes forward in LA County
Drought hits food supplies in Central America
ATB posts record profits of $83.9M in Q1
Bank of America settlement likely to benefit few
Attorney: Utah eatery had other chemical burn
Study: Wealth gap widened in the last decade
How the Dow Jones industrial average did Thursday
Home Depot says Menear will become CEO on Nov. 1
Onex fund sells Car Wash Partners Inc.
Gap reports higher profit, plans India expansion
S&P 500 closes at a record; Hewlett-Packard gains
Ford recalling more than 160,000 vehicles
Venezuela proposes fingerprinting shoppers
NY judge scolds Argentina, but no contempt order
Average US 30-year mortgage rate at 4.10 pct
USS Saratoga carrier heads off to be scrapped
Officer in Wal-Mart shooting involved in 2010 case
Companies must be transparent: watchdog
Airline group forecasts uptick in Labor Day travel
Ecologists team up to buy Texas bayside ranch
Music site SoundCloud to start paying artists
Amazon starts selling physical books in Brazil
Financial tips to prepare for university
New restrictions on hydrocodone to take effect
Stocks move higher; S&P 500 heading for a record
Manitoba farmers expect solid soybean harvest, but decline in other crops
Hostess closing bakery that created the Twinkie
CRTC issues proposals to change TV delivery
United lures top fliers with promise of a hot meal
Card cheat who used invisible ink gets casino ban
How states fared on unemployment benefit claims
Stockwell Day joins bitumen refinery proposal
Gauge of US economy rises 0.9 per cent in July
US housing recovery appears to be back on track