UQM Technologies Signs Joint Venture Agreement with China National Heavy Duty Truck Group Co., Ltd.
November 30 2017 - 6:56PM
Business Wire
- UQM will be a 25% partner in the joint
venture with an option to increase its ownership to 33% after the
first year of operation.
- The initial total capital of the joint
venture will be $24 million, with UQM contributing $6 million in
three installments over the next year.
- UQM’s funding requirement is contingent
on the closing of the Second Stage Investment with CNHTC.
- The joint venture will serve the China
market for commercial vehicle E-drives and the global market for
E-axles, and intends to operate its headquarters in Qingdao,
China.
- The expected annual production capacity
of the JV is 50,000 systems and it plans to commence operations in
2019.
UQM Technologies, Inc. (NYSE American: UQM) announced
today it has signed a Joint Venture Agreement (“JVA”) with China
National Heavy Duty Truck Group Co., Ltd. (“CNHTC”) and Sinotruk
Global Village Investment Limited, a Hong Kong based limited
liability company owned by CNHTC. Under the JVA, UQM will acquire a
25% ownership share of the joint venture with CNHTC and its
affiliate collectively acquiring a 75% share. UQM has the option to
increase its ownership position to 33% in the next one to three
years. The initial total capital of the joint venture will be $24
million, with UQM contributing $6 million in three installments
during the next year. UQM’s funding requirement is contingent on
the closing of the Second Stage Investment with CNHTC, in accord
with the terms of the Stock Purchase Agreement signed by both
parties on August 25, 2017.
The joint venture will be named Sinotruk Qingdao Zhongqi New
Energy Automobile Co., Ltd. and will be headquartered in the city
of Qingdao, China. The purpose of the JV will be to serve the China
market for commercial vehicle E-drives and the global market for
E-axles. The annual production capacity which the JV intends to
establish is 50,000 systems, and it is anticipated to commence
commercial operations in 2019.
“We are very excited to have signed a joint venture agreement
with CNHTC,” said Joe Mitchell, President and CEO of UQM. “Our
strategy for many years has been to align ourselves with a Chinese
partner that would enable us to have a local manufacturing presence
in China. This JV agreement gives us the opportunity to manufacture
and sell our electric propulsion systems to the largest market in
the world for electric vehicles. We believe that our alliance with
CNHTC, given their size, strength, and world class reputation in
the global commercial vehicle market, combined with UQM’s
second-to-none electric propulsion technology, will generate many
opportunities for growth.”
Mr. Ma Chunji, Chairman of CNHTC, said, “The new joint venture
with UQM provides us the best technology to expand our new energy
vehicle presence in China. While we do business in over 100
countries, we also look forward to using our partnership with UQM
to grow in the global market as well. We look forward to a long and
successful relationship with UQM.”
About UQM
UQM Technologies is a developer and manufacturer of power-dense,
high-efficiency electric motors, generators, power electronic
controllers and fuel cell compressors for the commercial truck,
bus, automotive, marine, and industrial markets. A major emphasis
for UQM is developing propulsion systems for electric, hybrid
electric, plug-in hybrid electric and fuel cell electric vehicles.
UQM is TS 16949 and ISO 14001 certified and located in Longmont,
Colorado.
About China National Heavy Duty Truck Group Co., Ltd.
China National Heavy Duty Truck Group Co., Ltd. (“CNHTC”) is the
parent company of Sinotruk (Hong Kong) Limited (“Sinotruk”), a
leading heavy-duty commercial vehicle manufacturer in China and one
of the largest commercial vehicles groups in the world. Its
products are distributed in over 90 countries worldwide, including
in South America, Africa, Southeast Asia, the Middle East, Ireland
and Australia, among many others.
Since its founding in 1950, Sinotruk has had a long and
successful history cooperating with international partners in
developing new products and markets in China and elsewhere,
including Steyr of Austria, MAN SE of Germany, and Cargotec of
Finland. CNHTC has two subsidiaries listed on the Shenzhen Stock
Exchange and the Hong Kong Stock Exchange, respectively.
This Release contains statements that constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act and Section 21E of the Securities Exchange Act.
These statements appear in a number of places in this Release and
include statements regarding our plans, beliefs or current
expectations; including those plans, beliefs and expectations of
our management with respect to, among other things, gaining
required certifications, new product developments, timing and
manufacturing capacity of the Joint Venture, future orders to be
received from our customers, sales of products from inventory,
future financial results, liquidity, and the continued growth of
the electric-powered vehicle industry. Important Risk Factors that
could cause actual results to differ from those contained in the
forward-looking statements are contained in our Form 10-K and Form
10-Q’s, which are available through our website at www.uqm.com or
at www.sec.gov.
Source: UQM Technologies, Inc.
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EnergyTech Investors, LLCShawn Severson,
415-233-7094orUQM Technologies, Inc.David Rosenthal,
303-682-4900
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