PCI conversion contracts mean 'significant' future business

First the state, then the nation. That's the scope of business opportunities opened up for Productive Concepts Inc. in Union City by its recent contracts with the Indiana Department of Transportation and General Motors. About INDOT, Rob Lykins, president of PCI, said, "The state is setting a precedent for the rest of the country to follow. PCI can benefit by bidding on future alternative fuel conversion contracts from other states."

INDOT is one of  seven partners in Indiana's $22.8 million project that will convert whole fleets for the state and two cities to alternative fuels, as well as building the infrastructure to service those alternative fuel  vehicles.

Lykins said Indiana is believed to be the only state in the nation to utilize American Recovery and Reinvestment Act funds to convert entire fleets to alternative fuels.

"Our goal is to approach other states in the future that may be interested in copying the model Indiana has adopted," Lykins said. "This could lead to significant future business opportunities for us."

PCI has already created more than 20 new jobs as a result of the INDOT and GM contracts and expects to hire more employees as these projects continue to develop this fall.

Lykins is sure the alternative fuels business is here to stay. He said, "The recent contracts with GM and INDOT signal that alternative fuels are here to stay. Indiana is the first state to back such an aggressive, pioneering alternative fuel conversion program, and GM has sent a message to the world that it believes in alternative fuels."

GM is backing its new Savana and Express compressed natural gas (CNG) programs with its standard three-year/36,000 mile warranty. PCI will be converting those new units produced in Missouri to hybrids by adding the CNG capability in Union City. The production level requires 9 or 10 vehicles a day on two lines.

The INDOT propane conversions will be done on existing (not new) INDOT fleet vehicles at a rate of five a day on one production line.

Lykins declared, "These visionary customers are making a statement to the nation and to the world that alternative fuels are here to stay, that they are viable, dependable and economically feasible."

Timing has a lot to do with PCI's place at the forefront of the alternative fuels business.

Five  years ago PCI developed a business model that would allow it to provide individual, flexible alternative fuel solutions for any volume of business - from one unit to hundreds. That flexibility all happens under one roof, and that's a selling point for PCI.

Lykins said, "None of our competitors can say that."

He concluded, "The timing is right, and we believe North America is shifting away from Mideast oil as the main transportation fuel option. This shift is good for our business, good for our community, good for the environment and good for our national security."

- Cynthia Aukerman

Click here to view the story on Winchester News-Gazette.

« Back to UP TO SPEED

© 2010 AutogasForAmerica.org All Rights Reserved.