Allison FracTran® Expands to Canadian Market

Rhea-AI Summary

Allison Transmission has expanded its FracTran® hydraulic fracturing transmission to the Canadian market through a partnership with Element Technical Services. This marks FracTran's first deployment in Canada, representing a potential $100 million annual revenue growth for Allison's global Off-Highway market. The FracTran, designed for harsh operating conditions, offers high reliability and efficiency, enhancing productivity in oil fields.

Key features of FracTran include eight gear ranges, multiple gear ratios, and a current rating of 3,300 horsepower with 10,000 lb.-ft. of input torque, upgradable to 3,500 horsepower. It also provides live diagnostics, a transmission-mounted control module, and an onboard remote information system, aiming to improve sustainability, efficiency, and profitability for service operators.

Positive

• Expansion into Canadian market, potentially increasing annual revenue by $100 million
• Partnership with Element Technical Services for market entry
• FracTran offers high reliability and efficiency, enhancing field productivity
• Capable of upgrading from 3,300 to 3,500 horsepower without hardware modifications
• Features advanced diagnostics and control systems for improved performance

Negative

• None.

Financial Analyst

Allison Transmission's expansion into the Canadian market through its partnership with Element Technical Services represents a significant growth opportunity. The FracTran product, positioned to generate an incremental $100 million in annual revenue, demonstrates the company's ability to innovate and capture new market shares in the hydraulic fracturing industry. This aligns with Allison's broader strategy to diversify its geographical footprint and leverage its technological advancements in new regions.

From a financial perspective, the introduction of FracTran in Canada could enhance Allison's market position and potentially improve its revenue and profitability margins. Given the high reliability and efficiency of FracTran, as noted by Element Technical Services, this could translate into higher demand and repeat orders. Investors should watch for further financial disclosures and performance metrics related to this expansion to gauge the impact on Allison's bottom line.

Market Research Analyst

The partnership with Element Technical Services opens up Allison Transmission to the robust Canadian oil and gas market, particularly in the Williston Basin, Powder River Basin and Western Canadian Sedimentary Basin. These regions are known for their challenging operating conditions, which could serve as a strong proving ground for the FracTran's capabilities.

In terms of market dynamics, the hydraulic fracturing industry is highly competitive, with a strong focus on low total cost of ownership and high return on invested capital. Allison's FracTran, with its advanced features like live diagnostics and versatility in gear ranges, positions it well against competitors. This could lead to increased market penetration and customer loyalty in the long term.

Investors should consider the potential market risks, such as fluctuations in oil prices and regulatory changes, which could impact the broader industry and, consequently, Allison's operations and revenue streams.

Tech Expert

Allison Transmission's FracTran is equipped with advanced technological features such as eight gear ranges, multiple gear ratios and a substantial power rating of 3,300 horsepower, scalable to 3,500 horsepower without hardware modifications. These specifications highlight the product’s versatility and robustness, important for the demanding conditions of the oil and gas industry.

The inclusion of live diagnostics for filter elements and transmission fluid, along with a transmission-mounted control module and onboard remote information system, underscores Allison's commitment to innovation and operational efficiency. These features not only enhance performance but also reduce downtime and maintenance costs, which are critical factors for service operators aiming to maximize productivity and profitability.

As technology continues to evolve, maintaining a competitive edge through continuous innovation will be key for Allison. The successful deployment of FracTran in Canada will likely serve as a benchmark for further technological advancements and market expansions.

Through its partnership with Element Technical Services, the next-generation purpose-built Allison hydraulic fracturing transmission is in operation in Canadian oil fields.

INDIANAPOLIS, July 23, 2024 /PRNewswire/ -- Allison Transmission has partnered with Element Technical Services, an industry-leading pressure pumping services company serving the Williston Basin, Powder River Basin and Western Canadian Sedimentary Basin, to field Allison's FracTran^® in Canada for the first time. FracTran entered production last year and represents an incremental growth opportunity of $100 million dollars in annual revenue for Allison's global Off-Highway end market.

"The unique and continually evolving demands of the hydraulic fracturing industry require a transmission that delivers powerful performance, especially under the harsh operating conditions here in Canada," said Greg Dercach, Maintenance Manager, Element Technical Services. "We were impressed by the FracTran's high reliability and efficiency, which will increase our productivity in the field."

As the latest innovation in Allison's Oil Field Series™ product line, FracTran was developed as a result of extensive voice-of-customer insights as well as an analysis of duty-cycle information gathered from Allison's decades of experience operating in oil and gas fields throughout the world. The FracTran will enhance service operator competitiveness and productivity in an industry that values low total cost of ownership and high return on invested capital.

"This collaboration marks FracTran's expansion into a new market," said Kartik Ramanan, Executive Director, Global Off-Highway, Customer Support and Service Engineering, Allison Transmission. "We look forward to partnering with Element Technical Services to deliver a solution that will enable them to transition to higher horsepower, smaller spreads to reduce their environmental footprint and seek shorter times to reach depth in search of improved sustainability, efficiency and profitability."

The FracTran is equipped with eight gear ranges and offers multiple gear ratios designed to provide versatility to customers. It launched with a rating of 3,300 horsepower and 10,000 lb.-ft. of input torque to meet current market requirements. However, the product is capable of up to 3,500 horsepower with no hardware modifications required. In addition, FracTran offers live diagnostics for filter elements and transmission fluid, a transmission-mounted control module, torsional measurement diagnostics and an onboard remote information system.

For more information on the FracTran, please visit allisontransmission.com.

About Allison Transmission
Allison Transmission (NYSE: ALSN) is a leading designer and manufacturer of propulsion solutions for commercial and defense vehicles and the largest global manufacturer of medium- and heavy-duty fully automatic transmissions that Improve the Way the World Works. Allison products are used in a wide variety of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (school, transit and coach), motorhomes, off-highway vehicles and equipment (energy, mining and construction applications) and defense vehicles (tactical wheeled and tracked). Founded in 1915, the company is headquartered in Indianapolis, Indiana, USA. With a presence in more than 150 countries, Allison has regional headquarters in the Netherlands, China and Brazil, manufacturing facilities in the USA, Hungary and India, as well as global engineering resources, including electrification engineering centers in Indianapolis, Indiana, Auburn Hills, Michigan and London in the United Kingdom. Allison also has approximately 1,600 independent distributor and dealer locations worldwide. For more information, visit allisontransmission.com.

 

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SOURCE Allison Transmission Holdings Inc.

FAQ

What is the potential revenue growth for Allison Transmission (ALSN) from FracTran's expansion to Canada?

The expansion of FracTran to the Canadian market represents a potential $100 million in annual revenue growth for Allison Transmission's global Off-Highway end market.

What are the key features of Allison Transmission's (ALSN) FracTran hydraulic fracturing transmission?

FracTran features eight gear ranges, multiple gear ratios, 3,300 horsepower rating (upgradable to 3,500), 10,000 lb.-ft. of input torque, live diagnostics, a transmission-mounted control module, and an onboard remote information system.

Who is Allison Transmission's (ALSN) partner for introducing FracTran to the Canadian market?

Allison Transmission has partnered with Element Technical Services, a pressure pumping services company, to introduce FracTran to the Canadian market.

What are the benefits of Allison Transmission's (ALSN) FracTran for oil field operations?

FracTran offers high reliability and efficiency, enhancing productivity in harsh operating conditions. It enables transition to higher horsepower, smaller spreads, reducing environmental footprint and improving sustainability, efficiency, and profitability.