Power Solutions International Expands $121.9 Million Engine Deal

Power Solutions International, Inc. amended its supply agreement with HD Construction Equipment Co., Ltd. on Nov. 9, setting about $121.9 million in purchases of natural gas engine long blocks for 2027 and 2028. HD Construction Equipment is an affiliate of HD Hyundai.

The agreement covers GV22TI 22-liter engine long blocks scheduled for delivery in those years. It sets a fixed unit price for engines ordered and shipped on or before Dec. 31, 2028, unless both companies agree in writing to a change.

Power Solutions International will pay 10% of each year’s contract value in advance. The 2027 advance is due by Nov. 30, 2026, and the 2028 advance is due by June 30, 2027. HD Construction Equipment will repay each advance through a 10% reduction to invoices for products shipped during the applicable year.

If actual purchases over the 24-month period fall below 90% of scheduled volume, the parties will discuss and agree on a recovery mechanism. That mechanism may include a price increase in 2029.

Power Solutions International incorporates engine components into stationary power systems for markets including data centers and other critical infrastructure. Its supply relationship with HD Construction Equipment and its predecessors dates to 2007.