Capstone Turbine (NASDAQ:CPST) Executes 5-Year Long-Term FPP Service Contract in Mexico as Factories Resume Operation
Service Agreement for 1.6 MW of Microturbines at an Automotive Parts Manufacturing Facility
VAN NUYS, CA / ACCESSWIRE / July 15, 2020 / Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST), the world's leading clean technology manufacturer of microturbine energy systems, announced today that DTC Ecoenergia (www.dtc.mx), Capstone's exclusive distributor for the Energy Efficiency, Renewable Energy and Critical Power Supply market verticals in Mexico, signed a new Factory Protection Plan (FPP) long-term service contract for 1.6 megawatts (MW) of Capstone microturbines installed in Mexico at a large automotive parts manufacturing facility.
Commissioned May 15, 2015, the Capstone microturbines are installed at a body and chassis systems manufacturer for global automakers and are used for peak shaving and power generation. This large end-use automotive customer currently owns and operates 6.6 megawatts of Capstone microturbines installed at 4 of their 32 manufacturing facilities in Mexico.
The comprehensive 5-year FPP contract provides complete service coverage, including scheduled and unscheduled maintenance. The decision to put these two C800's under Capstone's industry-leading FPP was made as the Mexican government recently announced that the transportation manufacturing industry is an essential business for the country's economy and can resume operations.
"With this additional FPP maintenance contract in Mexico, DTC continues their leadership both in the growing Latin America region and globally for the Capstone aftermarket business," stated Jeff Foster, Capstone's Senior Vice President of Customer Service and Product Development. "This new contract gives DTC the fourth largest FPP fleet globally and the largest fleet in Latin America with 21 MW, or an impressive 75% of the Latin American FPP fleet," added Mr. Foster.
"We are very pleased to see the return of the manufacturing industry in Mexico after the unprecedented shutdown due to the COVID-19 pandemic," stated Darren Jamison, President and Chief Executive Officer of Capstone Turbine Corporation. "DTC's leadership and strong relationships with their customers have helped them expand their business, as well as Capstone's presence in this critical manufacturing sector, and we fully expect this market to continue to provide dividends for our business enterprise moving forward," concluded Mr. Jamison.
Capstone's innovative Factory Protection Plan, or FPP, is a comprehensive maintenance program designed to give financial peace of mind to Capstone customers by providing product life cycle costs at a fixed rate for both scheduled and unscheduled maintenance for the life of the microturbine system. Additionally, the recently updated FPP protects microturbine customers from potentially dramatic future increases in life cycle costs associated with changes in replacement spare parts pricing, commodity price increases, import tariffs, and interest rate changes.
About Capstone Turbine Corporation
Capstone Turbine Corporation (www.capstoneturbine.com) (NASDAQ:CPST) is the world's leading producer of highly efficient, low-emission, resilient microturbine energy systems. Capstone microturbines serve multiple vertical markets worldwide, including natural resources, energy efficiency, renewable energy, critical power supply, transportation and microgrids. Capstone offers a comprehensive product lineup, via our direct sales team, as well as our global distribution network. Capstone provides scalable solutions from 30 kWs to 10 MWs that operate on a variety of fuels and are the ideal solution for today's multi-technology distributed power generation projects.
For customers with limited capital or short-term needs, Capstone offers rental systems, for more information, contact: email@example.com. To date, Capstone has shipped nearly 10,000 units to 83 countries and in FY20, saved customers an estimated $219 million in annual energy costs and 368,000 tons of carbon.
This press release contains "forward-looking statements," as that term is used in the federal securities laws. Forward-looking statements may be identified by words such as "expects," "believes," "objective," "intend," "targeted," "plan" and similar phrases. These forward-looking statements are subject to numerous assumptions, risks and uncertainties described in Capstone's filings with the Securities and Exchange Commission that may cause Capstone's actual results to be materially different from any future results expressed or implied in such statements. Capstone cautions readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Capstone undertakes no obligation, and specifically disclaims any obligation, to release any revisions to any forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.
"Capstone" and "Capstone Microturbine" are registered trademarks of Capstone Turbine Corporation. All other trademarks mentioned are the property of their respective owners.
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Released July 15, 2020