According to published reports, Premier Glen Clark announced his government would buy preferred shares, which are convertible into common stock. If converted today, the BC government would own 6%, making it one of the largest single shareholders in the company.
Under the deal, the government can't own more than 10% of the company.
Western Star will expand its truck plant in Kelowna, BC, to create an industrial park. The existing facility has run out of space to build a new planned line of Class 3 trucks. The existing plant turns out 31 heavy-duty Class 8 trucks a day. When completed, the new plant will have a capacity of 40 trucks a day. Added to the new plant under construction in South Carolina, the addition will more than double Western Star's capacity for building Class 8 trucks.
Western Star posted a 49% increase in profits for the third quarter of its financial year on a 23% increase in revenue. Third-quarter sales of Western Star trucks were up 43% on the year.