EKPO Fuel Cell Technologies, a joint venture between ElringKlinger and Plastic Omnium, is expanding its activities in China by establishing a Chinese subsidiary. The aim is to produce the first batch of stacks in Suzhou before the end of this year.
The subsidiary will operate under the name of EKPO China and will be located in Suzhou, west of Shanghai. The company said that as a first step, it would invest more than one digit euros there as a venue. According to the attached press release, the company's intention is to further develop the fuel cell market in China.
At the end of 2021, FC JV has turned its attention to the Far East: at that time, EKPO established a cooperative relationship with DR Powertrain System, a German Chinese system integrator, to develop a fuel cell system with EKPO stack for the Chinese market. Even then, Elring Klinger, a shareholder of EKPO, said that EKPO's base in Suzhou, China, due to its proximity to Shanghai, would become a center for further FC activities in Asia.
With the launch of the subsidiary and the agreement with the local government to inject subsidies, the business strategy of the joint venture is emerging. "China is a key future market for EKPO. Our market leading stack technology provides high-performance products and makes a decisive contribution to sustainable transportation in the world's largest automobile market," said Gernot Stellberger, one of EKPO's general managers. The planned foundation is a reasonable next step to establish the local value creation of fuel cell technology in China. "Our goal is to produce the first batch of battery stacks in Suzhou before the end of this year".
Prior to the establishment of production capacity in Suzhou, a fuel cell test bed was installed earlier this year. According to the company, the decision to invest millions of dollars in the area was based on "very positive feedback from several successful fuel cell projects with local customers".
EKPO describes itself as a comprehensive supplier of fuel cell stacks and components, focusing on the passenger car market, light commercial vehicles, trucks and buses. The joint venture was established in October 2020, with ElringKlinger holding 60% of the shares and French company Plastic Omnium holding 40%. According to the company's own information, the current production capacity of the joint venture is initially 10000 chimneys per year, which will be gradually expanded according to the order situation.
