Santa Ana-based natural gas fuel systems developer Agility Fuel Systems plans to open a $7.5 million factory in North Carolina later this year, an expansion driven by a growing demand for natural gas-equipped vehicles.
Agility specializes in fuel systems for heavy-duty vehicles, including commercial trucks.
The company has about 450 workers, a sales office in Brentwood, Tenn., and three assembly facilities—in Fontana; Anniston, Ala.; and Canada. Its Orange County headquarters houses administrative, research and development, and some manufacturing operations.
Agility’s new facility in North Carolina will be 204,000 square feet, with room for as much as an additional 100,000 square feet.
It’s “strategically located north of Charlotte [in Salisbury] in order to be in close proximity to heavy duty truck and bus [original equipment manufacturers] assembly plants,” the company said.
Production is expected to start later this year. The facilities will turn out cylinders and various fabrications, and handle assembly and installations of systems.
The announcement of the new plant followed a recent agreement with Cummins Inc. in which the company will invest an undisclosed amount in Agility’s equity.
Columbus, Ind.-based Cummins provides diesel engines and component products. It has about $25 billion in market capitalization.
Agility was formed in 2011 in a merger between FAB Industries in Brentwood, Tenn., and Enviromech Industries in Canada. The deal was completed with a $22 million equity investment provided by Element Partners, a Radnor, Penn.-based investment firm focused on clean technology companies.
Agility named Barry Engle chief executive in August 2011. He previously served as chief executive of Think Holdings AS, an electric vehicles maker in Norway, and in various leadership roles for Ford Motor Co., including as president of Ford of Canada.
Agility moved its headquarters to Santa Ana in 2012.
Financial information about the company isn’t available.
Element’s website indicates it typically invests in companies that have at least $20 million in revenue and between $20 million and $250 million in enterprise value.
