Kraus wins $2-million contract

Deal with Thailand seen as first step

Kraus Global has reasserted itself as a preferred supplier of refueling solutions for alternative fuels in southeast Asia.

The Winnipeg company announced a $2-million contract to supply equipment for 10 compressed natural gas (CNG) refueling stations in Thailand. The deal with the Petroleum Authority of Thailand puts Kraus on a short list of suppliers which gives it the prospects of doing more business there as that country embarks on an ambitious program to use CNG as fuel for automobiles and other public transportation vehicles.

"The Thai government's objective was to shop for key suppliers and now that we are on the approved short list there is no reason to think we won't get more work there," said Norm Estey, the president and CEO of Kraus.

For various reasons - not the least of which is the increasing costs of imported oil - Thailand's government is mandating the use of CNG for buses, taxis and other public service vehicles like garbage trucks.

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It is also planning to give investment incentives, cust vehicle registration fees or extend financial assistance to private operators who produce or use natural gas-fuelled vehicles.

Estey said while CNG burns much cleaner than conventional fossil fuels, it is economic issues rather than environmentan concerns which drive investments in such alternative fuels. He siad those dynamics are now underway in places like India and China where Kraus has done business in the past.

Although Kraus supplies products to the refueling business in North America, a large percentage of its business is offshore. Estey said Kraus recently re-qualified for a high safety standard in Europe - a standard that is much higher than in North America - and the company is now able to compete for new business there.

"Europe takes the Kyoto accord seriously and there are already plenty of Mercedes and Volvos coming out of the factories that use CNG, " Estey said.

A network of CNG stations is being developed there and Kraus is keen to bid on teh opportunity to sell dispensers, valves and electronic heads as that network grows.

Originally founded in 1962, Kraus Global Inc. today is an innovative solutions provider of transportation refueling equipment and components in the alternative fuel and petroleum industries. Kraus is a recognized leader in the alternative fuels industry providing refueling equipment for compressed natural gas (CNG), liquefied petroleum gas (LPG) and compressed hydrogen (H2) fuels.