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Hexagon Composites — Capital/Financing Update 2021
Mar 2, 2021
3619_rns_2021-03-02_4d673a48-0c53-4c7a-b38d-9412d84c925c.html
Capital/Financing Update
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Hexagon Purus signs Joint Venture agreements with CIMC Enric for China and Southeast Asia, the world's largest zero emission hydrogen vehicle and distribution market
Hexagon Purus signs Joint Venture agreements with CIMC Enric for China and Southeast Asia, the world's largest zero emission hydrogen vehicle and distribution market
* CIMC Enric and Hexagon Purus today signed two joint venture (JV) agreements
that encompass cylinder and systems production for Fuel Cell Electric
Vehicles (FCEVs) and hydrogen distribution in China and Southeast Asia.
* The Chinese market for Fuel Cell Electric Vehicles (FCEVs) is expected to
grow to become the largest global market over the next decade and beyond.
* Initially, the CIMC-HEXAGON JVs will expand CIMC Enric's existing
production and systems capacity for Type 3 (T3) cylinders and in parallel
install Type 4 (T4) cylinder production and systems capacity for the Chinese
market.
* The JVs expect to start production of high-pressure T3 fuel storage in 2021.
* Production line capacity will be designed to accommodate approximately
100,000 cylinders per annum, in a first stage towards the middle of the
decade. Construction of the new facility is expected to commence as early as
the second quarter 2021.
Hexagon Purus AS (Hexagon Purus) today signed two joint venture agreements with
CIMC Enric Holdings Limited (hereafter "CIMC Enric"), a leading global supplier
of cryogenic and compressed gas storage and transportation solutions and
manufacturer of clean energy equipment, headquartered in Shenzhen, People's
Republic of China. CIMC Enric is listed on the Stock Exchange of Hong Kong
(stock code: 03899.HK). Hexagon Purus, a global leader of Type 4 (T4) cylinder
technology, is a separately listed Hexagon Composites company on the Oslo Stock
Exchange (stock ticker: HPUR).
The cooperation is a highly compelling partnership: Hexagon Purus' world class
T4 hydrogen cylinder and systems technologies and design with over 20 years of
heritage and safety track record - and CIMC Enric's extensive expertise in gas
system development tailored to the Chinese market and its long-standing
relationships with large Chinese vehicle manufacturers (OEMs) and gas
distribution companies.
The joint ventures will serve the fast-growing demand of the Chinese market for
safe, lightweight and cost-efficient compressed hydrogen storage solutions.
Relevant industrial standards for T4 cylinders are currently being implemented
by the Chinese government. The joint ventures will also support the transition
to zero emission mobility solutions in Southeast Asia.
Powerful alliance
"China is on the rise to become the most significant global market for Fuel Cell
electric vehicles. Its successful energy transition to hydrogen requires safe,
advanced and cost-efficient high-pressure Type 4 fuel storage solutions that are
proven in the global market. By joining forces in China, CIMC Enric and Hexagon
Purus together contribute state-of-the-art Type 4 know-how, as well as the
market presence of a top, trusted Chinese brand. Both companies have proud
heritages of providing world class products and solutions to their customers,"
says Morten Holum, CEO of Hexagon Purus.
Leo Yang, Executive Director and General Manager of CIMC Enric adds, "China
always thinks big - and China has decided that hydrogen will be the next big
thing, within this decade. The CIMC-HEXAGON joint ventures are set up to offer
what the Chinese market for hydrogen storage will demand - safe and proven
products made by a team renowned for their integrity and world class designs and
manufacturing processes. Together, CIMC Enric and Hexagon Purus have the
financial backbone to scale up to serve the expected demand for both Type 3 and
Type 4 cylinders as well as high pressure hydrogen transportation in China and
Southeast Asia. Together, we will drive the energy transformation with a joint
vision of a zero emission transportation sector."
About the market
China, the world's largest auto market with over 28 million vehicles sold
annually, has set its sights on creating a world-leading market for fuel cell
electric vehicles (FCEVs) within two decades. According to Chinese policymakers'
planning, the market will grow from more than 7,000 FCEVs by end of 2020, to
1.3 million FECVs by 2035. It is also expected that hydrogen will account for
approximately 10% of primary energy consumption in China by 2050.
The initial focus of the Chinese hydrogen strategy is on fuel cell electric
buses and commercial vehicles. This will improve public awareness and showcase
the safety of hydrogen. The Association of Southeast Asian Nations (ASEAN)
announced its collective ambition to achieve 23% renewable energy integration
into its energy system by 2025, and even more by 2035.
The shift to zero emission vehicles is driven by the desire to improve air
quality and reduce CO2 emissions, as well as to increase energy independence by
utilizing large amounts of hydrogen already available in China. In addition,
hydrogen provides cost-efficient storage for surplus renewable energy from wind
and solar.
Structure
The cooperation will be organized around two joint ventures, a Cylinder JV and a
Systems JV, both registered in Hong Kong. The Cylinder JV will be majority-owned
by Hexagon Purus (Hexagon Purus will own 51% and CIMC Enric will own 49%) and
the Systems JV will be majority-owned by CIMC Enric (CIMC Enric will own 51% and
Hexagon Purus will own 49%). The JVs will form operating subsidiaries in 2021
and a joint sales and marketing team.
Live video webcast
Hexagon Purus will host a webcast to present the alliance on March 2nd at 12:00
Central European Time (CET)/19:00 China Standard Time (CST). Interested
investors/analysts/media can access the live video presentation through this
link: https://hexagonpurus.kg5.no/
(https://urldefense.proofpoint.com/v2/url?u=https-
3A__hexagonpurus.kg5.no_&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-
v5A_CdpgnVfiiMM&r=pzJ995BV3QvnKcywU_skPtzU3_MiRsjZeMDPJiAixEI&m=B6XMww8YRfPOk7Xw
ZKdB7rBs4Wkmtp4lx3j76dSnFsA&s=7LxCI8uRUloKixnc-UXQeQunuQKSHV55FlRtuOTrydM&e=).
Presentation materials will be available in the Investor section of Hexagon
Purus' website (www.hexagonpurus.com).
Interviews
Following the webcast:
* Investors/analysts are invited to contact Dilip Warrier/Salman Alam to
arrange one-to-one sessions
* Media are invited to contact Karen Romer to schedule interviews with Jon
Erik Engeset, CEO Hexagon Composites and Morten Holum, CEO Hexagon Purus
(See contact details below)
Contacts:
Karen Romer, SVP Communications, Hexagon Composites
Telephone: +47 950 74 950 | [email protected]
(mailto:[email protected])
Dilip Warrier, CFO, Hexagon Purus
Telephone: +1 949-236-5528 | [email protected]
(mailto:[email protected])
Salman Alam, Vice President Corporate Development, Hexagon Purus
Telephone: +476 12 713 | [email protected]
(mailto:[email protected])
About Hexagon Purus (stock ticker: HPUR)
Hexagon Purus, a Hexagon Composites company, is a world leading provider of
hydrogen type 4 high-pressure cylinders, battery packs and vehicle systems
integration for fuel cell electric and battery electric vehicles. Hexagon Purus
enables zero emission solutions for light, medium and heavy-duty vehicles,
buses, ground storage, distribution, marine, rail and aerospace. Learn more at
www.hexagonpurus.com (http://www.hexagonpurus.com).
About CIMC ENRIC Holdings Limited (stock code: 3899.HK)
Founded in 2004, CIMC ENRIC Holdings Limited has been listed on the Stock
Exchange of Hong Kong since 2005. The Company is affiliate to China
International Marine Container (Group) ltd. ("CIMC") and is principally engaged
in transportation, storage and processing equipment that is widely used for the
clean energy, chemical and environmental and liquid food industries. CIMC ENRIC
has been a leading integrated service provider and key equipment manufacturer in
the industry. The Company is among the world's top players in both production
and sales of ISO liquid tanks as well as high-pressure gas storage and transport
vehicles. It is among China's top players in the market of cryogenic transport
vehicles and cryogenic storage tanks and among top three in terms of domestic
market shares for large storage tanks for LNG receiving stations, modular
products for LNG refueling stations. CIMC ENRIC has built a global marketing
network and have over 20 subsidiaries located in China, the Netherlands,
Germany, Belgium, United Kingdom and Canada that operate production bases and
internationally advanced R&D centers. For more information, please visit
http://www.enricgroup.com
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act