Power Solutions International Inc. entered into a multi-year supply contract with NACCO Materials Handling Group Inc. to supply alternative-fuel engines to the forklift manufacturer. The financial terms of the deal were not announced.  PSI designs and manufactures emissions-certified, alternative-fuel and conventional power systems, while NMHG is the holding company for Hyster and Yale brand lift trucks.

PSI will manufacture the power systems in its Wood Dale, IL, plant, but said it likely would expand production to its plant in Dalian, China as demand requires.

The engine developer has been certified by U.S. EPA and California Air Resources Board for large spark-ignited (LSI) engines for mobile applications running on propane and natural gas.

PSI said the NACCO agreement would be the commercial launch for its 2.0-liter and 2.4-liter power system program, which has been in development for two years. These new displacements provide more power, torque, and improved fuel efficiency at lower speeds.

PSI will continue supplying 4.3- and 5.7-liter power systems to NMHG. It designed all four systems to run on propane and collaborated with NMHG to develop a newly certified compressed natural-gas system.

"Earning NMHG's long-term business marks a key milestone for PSI. Throughout this partnership, we have worked hard to exceed NMHG's expectations and this new agreement recognizes that effort," stated PSI president and CEO Gary Winemaster. "It is a significant validation for our capabilities and valued partnership."