The subsidiaries to be combined into a new standalone company focussing on manufacturing efficiencies
Landi Renzo S.p.a. and Clean Energy Fuels Corp. have decided to merge their compressor manufacturing subsidiaries into a new standalone company that is expected to immediately become one of the leading suppliers of natural gas compressors and other related products across the entire globe. With a strong presence in Europe and Asia,Landi Renzo’s SAFE and Clean Energy Compression, which is well established in the North and South America markets, will combine manufacturing and support operations. An international sales team will thus be equipped with an expanded line of quality compressors featuring the latest technologies.
Landi Renzo, upon closing, will own 51% of the new company and take over operational management. A 49% ownership will be retained by Clean Energy, with Andrew J. Littlefair, President and CEO of Clean Energy serving as the chairman of the board.
Cristiano Musi, current Group CEO of Landi Renzo who will also be the CEO of the new company, said “The world is rapidly waking up to the harmful impact that diesel is having on air quality. 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. 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,” said Littlefair.
Global positioning, product offering and market penetration required to meet the growing demand of transportation fleets that seek solutions to replace diesel are advantages the new company will be able to take. In order to address air quality problems caused by polluting NOx emissions, strict environmental policies are being adopted around the world. Some large vehicles are allowed to reduce their emissions by 90% by improved natural gas engine technology and a more abundant supply of renewable natural gas (RNG). PWKD30112017