New Flyer delivers on Ottawa order and plans to expand production

First to the order: New Flyer Industries finalised two new orders for 51 Xcelsior CHARGE NG battery-electric 40-foot transit buses from OC Transpo. The purchase of the battery-electric 40-foot transit buses was pulled through as a result of the 2023 framework agreement between the Toronto Transit Commission and New Flyer Industries. The Canada Infrastructure Bank as well as Housing, Infrastructure and Communities Canada also supported the purchase by investing in loans and grants to yield the purchase. This new purchase is said to compensate New Flyer’s firm backlog from Q4 2023.

“This important order follows the completion of a successful pilot project at OC Transpo that began in 2021 and included the launch of four Xcelsior CHARGE buses into revenue service,” said Chris Stoddart, President of North American Bus and Coach, NFI. “New Flyer has leveraged advanced technologies and our extensive zero-emission experience to create these vehicles, and this combination has resulted in an industry-leading battery-electric bus.”

OC Transpo’s bus and O-Train network services an area of 480 square km across Ottawa, Ontario and crosses over into Gatineau, Quebec. This puts the company in a position to massively contribute to decarbonising Canada by electrifying its fleets by 2036. The new procurement of OC Transpo’s electric bus intensifies the effort to deliver scalable, clean, and sustainable mobility solutions across North American cities as New Flyer’s electric vehicles have surpassed over 195 million EV service miles.

In regards to the factory expansion, the move is being undertaken with pledged support from the Government of Manitoba and Prairies Economic Development Canada (PrairiesCan). New Flyer is set to expand its manufacturing facility situated in Winnipeg to pave the way for the production of Xcelsior heavy-duty transit buses in Canada and an increased offering of zero-emission buses in an initiative code-named ‘the Project.’

Paul Soubry, President and CEO of NFI stated: “Today’s announcement is a major milestone for NFI as it allows us to complete full buses in Canada for the first time in nearly fifteen years. I would like to thank our partners at the Province of Manitoba and PrairiesCan for their commitment and financial support that will help enhance Manitoba’s Green economy.”

“This project is about putting a ‘Made in Canada’ stamp on the low-carbon economy. Here in Manitoba blue-collar workers are part of the transition to a net zero future, and it’s companies like NFI that are leading the charge,” said Premier Wab Kinew. “We’re pleased to partner with the federal government to get this All-Canadian Build facility done so we can continue to put Manitoba at the cutting edge of zero-emission transportation technology.”  

According to the report, the Project initiative will see New Flyer expand and transform its Winnipeg production facility to accommodate vehicle production capacity by up to 240 equivalent units per annum by 2027.

It is anticipated that the Project will provide 250 new direct green jobs at the company. The project which is bankrolled by the Government of Manitoba and Prairies Economic Development Canada (PrairiesCan) is set to commence immediately as it is envisaged that the first Xcelsior bus builds will be initiated in Q4 of 2025, with a continued ramp-up through 2026 before achieving the full 240 equivalent unit run rate in 2027. 

The Government of Manitoba and Prairies Economic Development Canada (PrairiesCan) have pledged to finance the project with C$10 million and C$15 million respectively. More funds will be achieved through cash flow provided by a two-year interest reduction on NFI’s current C$50 million provincial loan.  Regarding the funds, Paul says: “These funds will be strategically invested alongside our capital to expand our production capacity and increase our zero-emissions transit bus offerings, which will create new jobs and help create more livable North American communities.”

“Demand for zero-emission transit buses in our core markets is at record levels, driven by the transition of transit fleets to zero-emission buses in Canadian cities to meet national emission reduction goals,” said Chris Stoddart, President of North American Bus and Coach. “Not only will this project allow for full Canadian bus builds, but it will also free up U.S. capacity, to service even more U.S. customers across our network.”

newflyer.com, globenewswire.com

Author: Abdulwaliy Oyekunle