Commercialization of VariGen generator
Sainte-Julie, Quebec, April 16, 2009 – In the coming months, the firm CVT Corp will commercialize the second generation of its continuously variable transmission (VariGen). The Honourable Denis Lebel, Minister of State for Canada Economic Development, was on the premises of CVT Corp today to announce $400,000 in repayable funding toward the project.
The VariGen system optimizes engine performance while reducing fuel consumption as well as greenhouse gas emissions. Commercialization of this innovative transmission, which involves an overall investment of more than $1.4 million, should result in the negotiation of new contracts and the hiring of approximately twenty employees. CVT Corp expects its forward-looking product to reap $9.7 million in sales on U.S. and European markets by 2011.
"We are proud to support CVT Corp, which has devoted years to developing the VariGen generator. Many enterprises in the Montérégie and elsewhere in the province manufacture innovative products and generate investments vital to a dynamic economy. The Government of Canada believes it is important to support projects of this kind as well as to take the steps necessary to stimulate economic recovery," explained the Minister of State.
Activities funded include a U.S./European marketing plan and the hiring of a representative, production of promotional material, participation in trade shows and the acquisition of a production management and supply control MRP system.
As a result of the positive results of VariGen's pre-commercialization in 2007, Canada Economic Development was pleased to further support CVT Corp. The repayable funding announced today is awarded under the Innovation Support component of the Business and Regional Growth program, which aims to reinforce the conditions conducive to the sustainable growth of Quebec's regions and SMEs.
-30-
Sources:
Nathalie Lévesque
Communications
Canada Economic Development
Tel.: 514-283-0306
Cell.: 514-966-0661
E-mail: nathalie.levesque@dec-ced.gc.ca
Éric Lefebvre
Senior Special Assistant, Communications
Office of the Honourable Denis Lebel
Canada Economic Development
Tel.: 613-608-7906
E-mail: eric.lefebvre@dec-ced.gc.ca
