China company invests $60 million into PSI

WOOD DALE - Power Solutions International announced Weichai America Corp. will invest $60 million in PSI through a combination of newly issued common equity and preferred shares.

Weichai America is a fully owned subsidiary company of Weichai Power Co., a China-based global designer and manufacturer of diesel engines. The company has sold more than 4 million heavy duty diesel engines, with products sold in more than 110 countries around the world.

The two companies will work together to accelerate market penetration opportunities for each company's respective product lines across various geographic markets and end user segments. Through the alliance, PSI will gain access to Weichai's international manufacturing facilities and supply chain network.

"The opportunity to partner with a global leader like Weichai enables PSI to strengthen our capital structure and significantly accelerate our growth trajectory," said PSI President Gary Winemaster. "Through this alliance, we will dramatically expand adoption of our engines and technologies for transportation, power generation, and industrial applications within our current markets, including China, the world's largest market opportunity.

"In addition, through access to Weichai's extensive and complementary product offering, we will greatly expand our range of products, increasing the size of our overall addressable market across all of our end user segments."