C&D Technologies Awarded Contract for Development of Large-Format Lithium-ion Batteries
BLUE BELL, Pa., JAN 05, 2010 /PRNewswire-FirstCall/ -- C&D Technologies, Inc. (NYSE: CHP-News), a leading producer and marketer of batteries, battery systems and integrated standby power systems, today announced that the company has been awarded a contract by the US Army for the development of large-format lithium-ion battery systems. The $19 million contract will span an estimated four year period from September 18, 2009, with the objective of developing large-format lithium-ion batteries that can meet the growing needs of the US Army for light-weight, high power density battery systems. The technologies developed under the program will also be utilized in meeting the needs of C&D’s commercial customers, with potential application to large-scale grid-energy storage, renewable energy applications and distributed power for telecommunications systems, in addition to broader application in other branches of the military. The result will be a sustainable, domestic US source for high performance, large-format lithium-ion batteries, with the potential for achieving economies of scale to ensure affordability in a range of military and commercial applications. These new advanced lithium-ion battery systems will be developed and produced in C&D’s Milwaukee, Wisconsin operations, which has been a focus for renewed investment for the company over the last two years.
The funding profile for the contract includes an initial installment of approximately $1.6 million allocated in the Federal Government Fiscal Years 2008 and 2009, followed by $4.96 million for expanded development in the Fiscal Year 2010 Defense Appropriations Bill, passed by the Congress and signed into law by the President in late December. The balance of the contract funding is anticipated over the remaining two years of the program, pending future approval by Congress. The U.S. Army Research, Development and Engineering Command Contracting Center, Adelphi, Md., is the contracting agency (number W911QX-09-C-0107).
"This contract will allow C&D Technologies to establish a world class research and development facility in Milwaukee, Wisconsin, including pilot production capability dedicated to large-format lithium-ion batteries, and will establish a domestic manufacturing base for C&D designed lithium battery systems” said Dr. Jeffrey Graves, President and CEO of C&D Technologies. Dr. Graves continued, "C&D Technologies is grateful for the steadfast support of the Wisconsin Congressional delegation, particularly Senator Herb Kohl and Congresswoman Gwen Moore, whose leadership was crucial in securing these funds; this lithium-ion battery development program will support the creation of new, sustainable, high value ‘green collar’ manufacturing and R&D jobs at our Milwaukee location.” Dr. Graves concluded, “Under the local leadership of Mayor Tom Barrett, the City and State have worked together to create an environment for investment and growth in traditional manufacturing businesses that have inspired C&D to invest heavily for the long term future of its energy storage business in Milwaukee.”
Commenting on the new contract award, Congresswoman Moore stated, "Congratulations to C&D Technologies. I am thrilled because this project means one thing for my district: high tech jobs." Congresswoman Moore concluded, "This contract will produce the jobs of the future, and it has the potential for significant commercial application for years to come."
C&D Technologies, Inc.
C&D Technologies provides power solutions and services for the telecommunications, uninterruptible power supply (UPS), switchgear and control (utility), and emerging markets. C&D Technologies’ engineers, manufactures, sells and services fully integrated reserve power systems for regulating and monitoring power flow and providing backup power in the event of primary power loss until the primary source can be restored. C&D Technologies' unique ability to offer complete systems, designed and produced to high technical standards, sets it apart from its competition. C&D Technologies is headquartered in Blue Bell, PA. For more information about C&D Technologies, visit http://www.cdtechno.com.
This press release may contain forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934), which are based on management's current expectations and are subject to uncertainties and changes in circumstances. Words and expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. Factors that appear with the forward-looking statements, or in the company's Securities and Exchange Commission filings (including without limitation the company's annual report on Form 10-K for the fiscal year ended January 31, 2009, or the quarterly and current reports filed on Form 10-Q and Form 8-K thereafter), could cause the company's actual results to differ materially from those expressed in any forward-looking statements made herein, including but not limited to future contract awards by the US Army, developments and the potential for achieving results relating to large-format lithium-ion batteries, growing needs of the US Army for battery systems, technologies developed under the Army program, needs of C&D’s commercial customers, potential applications relating to large-scale grid-energy storage, markets for large-format lithium-ion batteries, and future approvals by Congress for contract funding.