Weichai Power acquires stake in Ballard Power Systems
(chinadaily.com.cn)| Updated : 2018-11-15Print Print
[Photo provided to chinadaily.com.cn]
Chinese automotive and equipment manufacturer Weichai Power Co became the largest shareholder of Ballard Power Systems Inc after its wholly-owned subsidiary Weichai Power (Hong Kong) International Development Co acquired a 19.9 percent stake in the Canadian firm for $164 million on Nov 13.
Weichai Power will nominate two directors to Ballard's board, which will expand the number of their directors to nine.
Ballard in Canada is a globally leading enterprise in hydrogen fuel cells. It designs, develops, manufactures and sells proton exchange membrane fuel cell products that can be applied in different fields and provides technical services.
Its products and engineering services are mainly used in heavy power systems, including passenger cars, trucks, light rails and ships.
Ballard's products and engineering services also include material handling and stationary power stations, and are used in major markets around the world, including the US, Europe, China and Japan.
After the equity cooperation, the two parties will immediately enter the stage of substantive business cooperation, focusing on the Chinese market.
They will work together to develop the next generation of hydrogen fuel cell products and quickly realize the commercialization and engineering of relevant leading technologies in China.
The two parties will jointly invest 1.1 billion yuan ($158.3 million) to establish a joint venture company, which will see Weichai hold a 51 percent stake, while Ballard will own 49 percent.
The joint venture will have exclusive rights to Ballard's next-generation proton exchange membrane fuel cell stack and module technology products in China's passenger car, commercial truck and forklift market.
Weichai has set a strategic goal of globally leading the new energy industry by 2030.
Weichai will take advantage of the strategic collaboration with the internationally-renowned company to integrate global resources, fully enter the field of hydrogen fuel cells, accelerate the breakthrough of the core technology of hydrogen fuel cells, promote its new energy strategy, and upgrade China's commercial vehicles and forklift industries with new energy.
A Weichai worker operates an engine production line. Provided to China Daily
A technician with Weichai Power assembles a hydraulics product at the company's Linde Hydraulics factory in the Weifang Hi-tech Industrial Development Zone. Photos Provided to China Daily