Founder Motor Plans to Raise USD63 Million to Develop, Produce NEV Motor and Driving System
Dou Shicong
DATE:  Sep 04 2017
/ SOURCE:  Yicai
Founder Motor Plans to Raise USD63 Million to Develop, Produce NEV Motor and Driving System Founder Motor Plans to Raise USD63 Million to Develop, Produce NEV Motor and Driving System

(Yicai Global) Sept. 4 -- Chinese electrical equipment maker Zhejiang Founder Motor Co. [SHE:002196] plans to raise USD62.7 million through a private placement to design and build a new-energy vehicle motor.

The firm's board passed a proposal for the private placement on Sept. 1. No more than 40 million shares will be issued, and funds raised will be used to set up a research institute and to build an NEV motor and driving system.

Total costs will be around USD69.9 million, with Founder Motor using self-raised money to top up the private placement.

The plant will be based in Lishui in China's eastern Zhejiang province, construction is set to take 18 months. It will have an annual output of 200,000 high-power motors and 150,000 driving systems. The research institute will be in Shanghai's Jiading District and will take 36 months to build. It will research and develop driving systems and energy-saving motors.

Founder Motor has already successfully been producing 10,000 motors and 100,000 driving systems a year, which it believes will help with the latest project. It also plans to invest more in scientific research and cooperate with university research departments, such as those at Zhejiang University.

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Keywords:   Zhejiang Founder Motor,New Energy Vehicle