Palcan and Shanghai Firm Sign Fuel Cell Joint-Venture
VANCOUVER, British Columbia--(BUSINESS WIRE)--Dec. 3, 2003--Palcan Fuel Cells Ltd. (TSX Venture:PC) today announced that it has signed a joint venture agreement with Shanghai Mingliang Plastic Co. Ltd., a private manufacturing company based in the Shanghai Pundong economic region. The joint venture is to establish a commercial manufacturing facility in Shanghai using Palcan's proprietary technology, to produce PEM fuel cell stacks for the global fuel cell marketplace. Palcan will have full managerial control of the facility, which is expected to be operational within six months.
Palcan will hold a 49% share while its joint venture partner; Shanghai Mingliang Plastic Co. Ltd. will hold a 51% share in the JV. Palcan obtains its 49% share through a combination of (a) the assignment of its manufacturing technology on a non-exclusive basis representing a 30% shareholding, and (b) for a cash investment of US$450,000 for the remaining 19%, the timing of which is at Palcan's election. Palcan will appoint two of the five directors on the JV board.
When fully operational, the manufacturing facility will manufacture 20,000 PEM Fuel Cell Stacks units per year. The units will be sold at substantially less than the current world market prices. Given the cost of manufacturing in China and the economies of scale, Palcan looks forward to an excellent return on its investment.
"This joint venture is a milestone in the history of Palcan. The manufacturing of our PEM fuel cell stacks for sale worldwide places us squarely at the forefront of fuel cell stack technology for the .05 kW to 5 kW market. This joint venture is a strong beginning to our commercialization and we expect to be expanding our manufacturing output well beyond 20,000 units annually as the market develops" stated Palcan Fuel Cells President & CEO Dr. John Shen. "Our facility in China will give us a strong position to exploit the Chinese market which is potentially immense as fuel cell costs are substantially reduced."
As an environmentally responsible Company Palcan believes it has a responsibility to its local community. Therefore, Palcan is pleased to announce the Company is a proud sponsor of the Illusions, Magic and Miracles put on behalf of the Burnaby, Delta, New Westminster and Surrey Fire Fighters Charitable Fund. For more information about this charitable event, please visit www.magicnmiracles.com.
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