Power Solutions International, Inc. designs, engineers, manufactures, markets and sells a broad range of advanced, emission-certified engines and power systems that are powered by a wide variety of clean, alternative fuels, including natural gas, propane, and biofuels, as well as gasoline and diesel options, within the power systems, industrial and transportation end markets.
The company’s products are primarily used by global original equipment manufacturers (‘OEMs’) and end-user customers acr...
Power Solutions International, Inc. designs, engineers, manufactures, markets and sells a broad range of advanced, emission-certified engines and power systems that are powered by a wide variety of clean, alternative fuels, including natural gas, propane, and biofuels, as well as gasoline and diesel options, within the power systems, industrial and transportation end markets.
The company’s products are primarily used by global original equipment manufacturers (‘OEMs’) and end-user customers across a wide range of applications and equipment that includes standby and prime power generation, demand response, microgrid, combined heat and power, arbor equipment, material handling (such as forklifts), agricultural and turf, construction, pumps and irrigation, compressors, and utility vehicles. As of January 1, 2024, the company no longer sold emissions-certified engines into the on-road market.
The company provides highly engineered, comprehensive solutions designed to meet specific customer application requirements and technical specifications, including those imposed by environmental regulatory bodies, such as the U.S. Environmental Protection Agency (‘EPA’), the California Air Resources Board (‘CARB’), and regulatory bodies within the European Union (‘EU’).
The company’s products include both sourced and internally designed and manufactured engines that are engineered and integrated with associated components. These comprehensive power systems are tested and validated to meet quality, safety, durability, and environmental standards and regulations.
Through advanced research and development (‘R&D’) and engineering capabilities, the company is able to provide its customers with highly optimized, efficient, durable, and emissions-compliant products that enhance their competitive position.
The company’s business is diversified across end markets and applications and also includes extensive aftermarket and service parts programs. These programs consist of internal aftermarket service parts programs with worldwide sales and distribution capabilities and internal OEM-developed service parts programs for components and products supplied by the company.
Products
The company’s sourced and internally designed and manufactured engine blocks are engineered and integrated with associated components in a range of configurations that includes basic engine blocks integrated with appropriate fuel system parts, as well as completely packaged power systems that include combinations of front accessory drives, cooling systems, electronic systems, air intake systems, fuel systems, housings, power takeoff systems, exhaust systems, hydraulic systems, enclosures, brackets, hoses, tubes, packaging, telematics, and other assembled componentry. The company also designs and manufactures large, custom-engineered integrated electrical power generation systems for both standby and prime power applications. The company’s comprehensive power systems are tested and validated to meet quality, safety, durability, and environmental standards and regulations.
The company sells engines and power systems, including both emission-certified compression ignition and spark-ignition internal combustion engines that are enabled by advanced controls to run on a wide variety of clean, alternative fuels, such as natural gas, propane, and biofuels, as well as gasoline and diesel options, within the power systems, industrial, and transportation end markets. Natural gas, gasoline, propane, and biofuel engines range from 0.99 liters (‘L’) to 53L, while Diesel options range from 20L to 88L. The company also designs and fabricates power system enclosures and sources electrification components that are engineered and integrated into desired configurations deemed ‘New Energy’ within the industrial end market.
Growth Strategies
The company’s strategies are to continue to improve profitability through the review of its customer and product portfolio; strengthen the business through the optimization of business systems and technology; continue to build on its broad product offering; capitalize on key market trends; pursue new product expansion by leveraging deep industry experience; leverage the company’s relationship with Weichai; and expand global business.
Sales and Marketing
The company employs a direct sales and marketing approach to maintain maximum interface with and service support for its OEM customers. This direct interface incorporates the corporate internal technical sales representatives. The company complements its direct OEM relationships with a localized, independent sales and product support organization. This localized sales and support organization provides the necessary knowledge of local customs and requirements while also delivering immediate sales assistance and customer support.
The company has invested in and is focused on capturing aftermarket sales of the value-added components that are included in its power systems. With a significant portion of the selling prices of the company’s power systems coming from value-added components, this is a large, continuing growth opportunity for its aftermarket business.
Customers
The company’s largest customer represented 11% of consolidated net sales in 2024.
Manufacturing
The company is certified to the most recent International Organization for Standardization (‘ISO’) standard, ISO 9001: 2015.
Research, Development and Engineering
The company’s net research, development, and engineering expenditures for 2024 were $20.1 million.
Supplier Relationships
In addition to producing its own engines, the company has established relationships with its suppliers for certain engines that are integrated into the company’s comprehensive power systems, the most significant of which are HD Hyundai Infracore Co., LTD (‘HD Hyundai’), a subsidiary of HD Hyundai, Shenyang Packson Technology Co., LTD. (‘SPY’), Chongqing Duchengrongfeng Mechanic Manufacture Co., Ltd (‘CDM’), and Weichai.
In November 2023, the company entered into a supply agreement with CDM for the exclusive purchase and distribution of engines in North and South America, in the industrial and power system markets.
In November 2023, the company also entered into a supply agreement with SPY for the exclusive purchase and distribution of engines in North and South America, in the industrial and power system markets.
Environmental Matters
The company’s reporting facilities follow the guidelines required for its federally enforceable state operating permits (FESOP) used with the Illinois Environmental Protection Agency (IEPA), and the Wisconsin Department of Natural Resources (WDNR) Type-B permit guidelines.
Government Regulation
The company’s power systems are subject to compliance with regulatory standards imposed by the U.S. Environmental Protection Agency (‘EPA’), state regulatory agencies in the United States, including the California Air Resources Board (‘CARB’), and other regulatory agencies around the world.
History
Power Solutions International, Inc. was founded in 1985.