ZPP Zongshen PEM Power founds new Chinese subsidiary
2005-07-05 09:03 ET - News Release
Dr. Mihai Talaba reports
ZONGSHEN PEM POWER SYSTEMS ESTABLISHES WHOLLY OWNED CHINESE SUBSIDIARY
Zongshen PEM Power Systems Inc. has founded a wholly owned Chinese subsidiary, Zongshen PEM (Canada) Chongqing Hydrogen Energy Ltd. The purpose of this new entity is to conduct further, advanced research and development combining integrating facilities and manufacturing with sales of proton exchange membrane fuel cells and fuel cell stacks for the Asian, North American and European markets. The company plans to advance the sum of $1-million (U.S.) to the new subsidiary.
Zongshen PEM is currently in transition from a development-stage research technology company to a manufacturer and marketer of its own fuel cell products. Its business development model includes building a competitive, market-leading organization by capitalizing on location -- combining the advantages of Zongshen PEM Power Systems being located in a world-class fuel cell research centre, namely Vancouver, and Zongshen PEM (Canada) Chongqing Hydrogen Energy being part of a rapidly growing manufacturing sector in the most dynamic market in Asia. In this context, the company is taking full advantage of the infrastructure offered by the Zongshen Industrial Group in China as well as its strong investor position in the Zongshen PEM Power Systems, the public company in Vancouver.
Zongshen PEM's market strategy is based upon the development and commercialization of its safe and practical fuel cell systems with related advanced materials and fuel cell components tailored to the specific application needs of the fuel cell industry. The company is focused on creating the world's first practical series of small to medium hydrogen/oxygen fuel cell stacks and systems for a variety of niche market applications. Zongshen PEM has a particular interest in integrated regenerative power systems that are one of the best-fit applications for its alternative energy renewable technologies. The company's new subsidiary in Chongqing (China) enables it to control and enhance its intellectual property position while transforming itself into a leading manufacturer of hydrogen/oxygen fuel cell products. Management anticipates that the company will introduce a limited range of fuel cells to prospective customers and joint venture partners on a mostly proof-of-concept and demonstrative basis during 2006.
"We are very excited about our new Chinese subsidiary and its potential for the company. With this new initiative, we will be better able to bring our finest products and technologies to the marketplace in a shorter period of time with lower associated costs," said Zongshen PEM's president, Dr. Jim Wei.
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