Quantum Fuel Systems Technologies Worldwide, Inc., a developer of advanced vehicle propulsion systems, fuel storage technologies, and alternative fuel vehicles, plans to expand manufacturing capacity for its industry-leading lightweight, polymer-lined carbon composite, natural gas on-board fuel storage tanks at its Lake Forest, California, campus to meet the accelerating demand.
While information on the total cost of its expansion was not immediately available, the firm said, in connection with its planned expansion Quantum has closed on a $3.25 million capital lease financing arrangement with Amur Investment Company LLC, to fund the purchase of new equipment related to the planned expansion.
"We are pleased to announce this production expansion plan for our existing Lake Forest, California facility and the non-dilutive equipment financing to begin this expansion," said Brian Olson, President and CEO of Quantum. "The broadening interest in natural gas has driven a significant increase in demand for Quantum's proven industry-leading, high capacity ultra light-weight natural gas vehicle fuel systems and we expect growth to continue in 2013 and beyond."
Quantum’s expansion is expected to double its current production capacity by setting up state-of-the art manufacturing lines at a 60,000 square foot building adjacent to its existing 30,000 square foot factory on Arctic Ocean Drive in southern California’s Orange County. The expansion is expected to provide additional capacity starting in the first quarter of calendar 2013, with continued incremental capacity coming on-line throughout the first six months of calendar 2013.
Quantum officials noted they previously announced a significant increase in new orders for its CNG fuel storage systems in 2012 compared to orders received during the same period in 2011 from natural gas vehicle system integrators and system developers.