(Yicai Global) Feb. 17 -- Zhongshan Broad-Ocean Motor Co. [SHE:002249] has finalized details on a partnership with Canada-based Ballard Power Systems Inc. [NASDAQ:BLDP] to manufacture and assemble fuel cell modules for commercial vehicles in designated areas of China.
The Guangdong-based motor firm will make two types of fuel cell modules for vehicles in Shanghai, Shandong and an as-yet undecided location, it said yesterday. It will distribute the products and provide after-sales service across mainland China.
When the agreement takes effect, Ballard will grand Broad-Ocean three assembly licenses for fuel cell modules the Chinese company currently manufactures and distributes, with each license applicable to a certain region.
Once the deal is approved, Broad-Ocean will pay Ballard USD3.6 million in initial licensing fees, the statement said. Each region will also pay fees after production begins, totaling USD2.8 million. The Canadian firm will offer loyalty rates for five years and will not authorize any third parties to assemble modules within the designated regions.
Ballard Power Systems develops and manufactures fuel cell products and is listed on the Nasdaq and the Toronto Stock Exchange.