Allison Transmission Debuts Next Generation Hydraulic Fracturing Transmission in China

Rhea-AI Summary

Allison Transmission introduces the Allison FracTran® to China's energy market, following its successful launch in North America in 2021. The transmission, designed for the fracturing industry, will be showcased at the 23rd China International Petroleum & Petrochemical Technology and Equipment Exhibition (CIPPE) from May 31 to June 2.

The FracTran's expansion into China represents a potential $100 million annual revenue growth for Allison's global Off-Highway end market. It features eight gear ranges, multiple gear ratios, and a current rating of 3,300 horsepower and 10,000 lb.-ft. of input torque, with the capability to reach 3,500 horsepower without hardware modifications. The transmission also includes advanced diagnostics and an onboard remote information system.

Positive

• Expansion into China's energy market represents a $100 million annual revenue growth opportunity
• FracTran rated at 3,300 horsepower with potential to reach 3,500 horsepower without hardware modifications
• Advanced features include life diagnostics, torsional measurement, and onboard remote information system

Negative

• None.

The Allison FracTran^® to enter China following its successful introduction in North America.

INDIANAPOLIS--(BUSINESS WIRE)-- Allison Transmission is pleased to introduce the Allison FracTran^® to the energy market in China. Designed from the ground up to meet the unique demands of the fracturing industry, the FracTran will be on display at the 23rd China International Petroleum & Petrochemical Technology and Equipment Exhibition (CIPPE) May 31 through June 2.

Designed from the ground up to meet the unique demands of the fracturing industry, the Allison FracTran® is launching in China following its successful introduction in North America. (Photo: Business Wire)

Initially introduced in North America in 2021, the FracTran’s expansion into China signifies the strong demand Allison is experiencing outside of North America, particularly in the energy sector, and represents an incremental growth opportunity of $100 million in annual revenue for Allison’s global Off-Highway end market.

“Fracturing pumps are mainly used for shale oil and shale gas extraction. In China, these resources are located deep underground. Powerful equipment is required to get fracturing pumps to the well subsurface faster and deeper,” said Kartik Ramanan, Executive Director, Global Off-Highway, Customer Support & Service Engineering, Allison Transmission. “The FracTran meets the needs of energy customers by delivering high reliability and powerful performance under pressure leading to increased productivity.”

As the latest innovation in Allison’s Oil Field Series™ product line, the FracTran will enhance service operator competitiveness and productivity in an industry that values low total cost of ownership and return on invested capital. This purpose-built next-generation solution 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 is equipped with eight gear ranges and offers multiple gear ratios designed to provide versatility to customers. The FracTran 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 life 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.

Forward-Looking Statements

This press release contains forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. You should not place undue reliance on these forward-looking statements. Although forward-looking statements reflect management’s good faith beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date the statements are made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to: increases in cost, disruption of supply or shortage of labor, freight, raw materials, energy or components used to manufacture or transport our products or those of our customers or suppliers, including as a result of the war in Ukraine and the COVID-19 pandemic; global economic volatility; the duration and spread of the COVID-19 pandemic, including new variants of the virus and the pace and availability of vaccines and boosters, mitigating efforts deployed by government agencies and the public at large, and the overall impact from such outbreak on economic conditions, financial market volatility and our business, including but not limited to the operations of our manufacturing and other facilities, the availability of labor, our supply chain, our distribution processes and demand for our products and the corresponding impacts to our net sales and cash flow; our participation in markets that are competitive; our ability to prepare for, respond to and successfully achieve our objectives relating to technological and market developments, competitive threats and changing customer needs, including with respect to electric hybrid and fully electric commercial vehicles; the highly cyclical industries in which certain of our end users operate; uncertainty in the global regulatory and business environments in which we operate; the concentration of our net sales in our top five customers and the loss of any one of these; the failure of markets outside North America to increase adoption of fully automatic transmissions; the success of our research and development efforts, the outcome of which is uncertain; U.S. and foreign defense spending and the timing of defense programs; risks associated with our international operations, including acts of war and increased trade protectionism; general economic and industry conditions including the risk of recession; the discovery of defects in our products, resulting in delays in new model launches, recall campaigns and/or increased warranty costs and reduction in future sales or damage to our brand and reputation; our ability to identify, consummate and effectively integrate acquisitions and collaborations; labor strikes, work stoppages or similar labor disputes, which could significantly disrupt our operations or those of our principal customers or suppliers; risks related to our indebtedness; and other risks and uncertainties associated with our business described in our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information is as of the date of this press release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in expectations and risks related to our indebtedness.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230523005554/en/

Claire Gregory

Director, Global External Communications

Claire.Gregory@allisontransmission.com

(317) 694-2065

Source: Allison Transmission

FAQ

What is the Allison FracTran® and where is it being introduced?

The Allison FracTran® is a next-generation hydraulic fracturing transmission designed for the fracturing industry. It is being introduced to the energy market in China following its successful launch in North America in 2021.

What potential revenue growth does the FracTran expansion represent for Allison Transmission (ALSN)?

The expansion of the Allison FracTran® into China represents an incremental growth opportunity of $100 million in annual revenue for Allison's global Off-Highway end market.

What are the key specifications of the Allison FracTran® transmission?

The Allison FracTran® features eight gear ranges, multiple gear ratios, and is currently rated at 3,300 horsepower and 10,000 lb.-ft. of input torque. It has the capability to reach 3,500 horsepower without hardware modifications.

Where and when will the Allison FracTran® be displayed in China?

The Allison FracTran® will be on display at the 23rd China International Petroleum & Petrochemical Technology and Equipment Exhibition (CIPPE) from May 31 through June 2, 2023.