PLASTIC OMNIUM (EPA:POM) - Plastic Omnium and ElringKlinger partner in fuel cell technology to accelerate the development of hydrogen mobility

Transparency directive : regulatory news

28/10/2020 21:50

Paris/Stuttgart, October 28, 2020

Plastic Omnium and ElringKlinger partner in fuel cell technology to accelerate
                     the development of hydrogen mobility

* Creation of EKPO Fuel Cell Technologies, a leading joint venture for
  development and mass production of fuel cell stacks for CO2-neutral mobility

* ElringKlinger will contribute its fuel cell business and know-how and Plastic
  Omnium will bring additional development capacity to accelerate growth

* ElringKlinger will hold 60%, Plastic Omnium 40% of the new company

* Plastic Omnium acquires ElringKlinger's Austrian subsidiary, specialized in
  integrated hydrogen systems, to complement its global hydrogen strategy

Hydrogen will play a major role in tomorrow's sustainable mobility. Convinced
of the promising future of this zero emission technology, Plastic Omnium and
ElringKlinger, two automotive supplier leaders in their respective business
areas, today agreed to take hydrogen-based fuel cell technology to the next
level. To fulfil this objective, they will create EKPO Fuel Cell Technologies,
a joint venture dedicated to fuel cell stack development, production and
commercialization. EKPO Fuel Cell Technologies will offer its product portfolio
to a broad range of customers including hydrogen systems integrators.

EKPO Fuel Cell Technologies will be owned 60% by ElringKlinger and 40% by
Plastic Omnium. ElringKlinger will bring all of its assets related to fuel
cells stacks, developed over more than 20 years. Assets include more than 150
employees, more than 150 patents, R&D and know-how, its fuel cell components
business, and several high power density fuel cell stack platforms already
marketed and manufactured at a facility located in Dettingen/Erms
(Baden-Württemberg), where the joint venture will also be headquartered. The
annual production capacity of initially up to 10,000 units in the joint venture
will be progressively extended according to the order book.

Plastic Omnium will invest EUR100 million in the new company to support the
acceleration of innovation, strongly develop the commercial pipeline and
increase production capacities. The world leader in energy storage and emission
reduction solutions will also contribute to the development of the JV through
its global customer portfolio, its worldwide presence and its technological
expertise in hydrogen storage and systems.

The CEOs of the two companies, Laurent Favre and Dr. Stefan Wolf, stated:
"Plastic Omnium and ElringKlinger have been strongly investing over the years
to develop their respective expertise in hydrogen technology. Both stock-listed
with a family as anchor shareholder and sharing the same values, we are jointly
building a leader in the development, design, production and marketing of fuel
cell stacks and components for passenger cars, commercial vehicles, buses,
trucks and other mobility applications. We aim to unlock the mass-market
potential for hydrogen and contribute to CO2-neutral mobility."

This industrial and technological partnership will allow EKPO Fuel Cell
Technologies to develop further and faster with high ambitions. The 2030
market, backed by increasing government support, is currently estimated at
annual production of between at least 2 and 3 million on-road vehicles. In
particular, France and Germany recently announced investments of EUR7 billion
and EUR9 billion respectively in hydrogen development. The creation of EKPO
Fuel Cell Technologies is a demonstration of French and German cooperation and
will be an important milestone in the development of hydrogen technologies to
accelerate the ecological transition and establishment of a dedicated
industrial sector that is competitive at a global level.

By 2030, EKPO Fuel Cell Technologies aims to reach a market share of 10 to 15%
in the fuel cell technology business, representing revenues between EUR700
million and EUR1 billion. This target includes a global industrial footprint
and is based on today's ability of a serial production of fuel stacks according
to automotive standards.

The two partners today also signed an agreement on the acquisition by Plastic
Omnium of ElringKlinger Fuelcell Systems Austria GmbH (EKAT), an Austrian
subsidiary of ElringKlinger specialized in integrated hydrogen systems, for an
enterprise value of EUR15 million. This acquisition strengthens Plastic
Omnium's expertise in energy management and control in hydrogen systems
("balance of plant").

The two agreements are being submitted to the competition authorities and are
subject to the usual legal requirements. They should be closed in Q1 2021.

Laurent Favre, CEO of Plastic Omnium, said: "We are very pleased about this
strategic alliance with ElringKlinger. It complements our positioning in the
entire hydrogen value chain, bringing fuel cell stacks and components to
large-scale production with EKPO Fuel Cell Technologies, and reinforces our
expertise in hydrogen systems with EKAT. This is for us another major step
toward hydrogen mobility, where we aim to be a world leader."

Dr. Stefan Wolf, CEO of ElringKlinger, commented: "ElringKlinger has gained
strong expertise in fuel cell technology over the past 20 years. Our stacks
offer a high power density and have proven their capabilities even under
adverse conditions. Now we are ready to leap forward into the age of hydrogen.
Together with our partner Plastic Omnium, we will leverage our engineering and
industrialization know-how to provide a portfolio of cost-competitive fuel cell
solutions that match both our customers' high- performance needs and
reliability requirements."

A joint conference will be hosted on October 29, 2020 at 10am CET with Dr.
Wolf, CEO of ElringKlinger, and Mr. Favre, CEO of Plastic Omnium.

About ElringKlinger

As an independent and globally positioned supplier, ElringKlinger is a powerful
and reliable partner to the automotive industry. Be it passenger car or
commercial vehicle, equipped with an optimized combustion engine, with hybrid
technology or with an all-electric motor, the Group offers innovative solutions
for all types of drive system. Developing cutting-edge battery and fuel cell
technology as well as electric drive units, ElringKlinger was among the
frontrunners when it came to positioning itself as a specialist in the field of
e-mobility. Alongside its proprietary fuel cell stacks, ElringKlinger is
acknowledged in particular for its innovative fuel cell components, including
patented designs for metallic bipolar plates and plastic media modules that
complement the product range. ElringKlinger PEMFC stacks provide exceptional
performance characteristics, thus setting an international benchmark: With an
electrical output of up to 150 kWel and a volumetric power density of 5.7 kW/l,
the NM12 fuel cell stacks are suitable for use in both passenger cars and
commercial vehicles as well as in other applications requiring a high level of
performance. The smaller NM5 fuel cell stacks provide an electrical output of 6
to 73 kWel. Moreover, the Group provides sealing technology, shielding systems
and lightweight products around the engine and the body structure of a vehicle.
These efforts are supported by a dedicated workforce of around 10,000 people at
45 ElringKlinger Group locations around the globe.

About Plastic Omnium
Around the world, Plastic Omnium provides carmakers with innovative solutions
for more connected and sustainable mobility. A global leader in its three
businesses, the Group develops and produces intelligent exterior systems, clean
energy systems and customized complex modules. With an international footprint
of 131 plants, 25 R&D centers and a 2,700 patent portfolio, Plastic Omnium
relies on its 31,000 employees to meet the challenges of clean and smart
mobility.

Innovation-driven since its creation, Plastic Omnium is now paving the way for
the zero carbon car through its investments in hydrogen solutions, for which
the Group has ambitions to become world leader throughout the entire value
chain.

Investor relations contact:
investor.relations@plasticomnium.com
+331 40 87 66 78

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PLASTIC OMNIUM (EPA:POM) - Plastic Omnium and ElringKlinger partner in fuel cell technology to accelerate the development of hydrogen mobility

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