UQM Technologies Inc. (NYSE MKT: UQM) today announced the signing of a ten
year supply agreement ("Agreement") with ITL Efficiency Corporation ("ITL")
in China, a subsidiary of Eastlake New Energy ("Eastlake"). Over the term of
the Agreement, revenues could exceed $400 million based on projected volume
shipments. Production is expected to begin in early 2017 following
development, test and certification programs during 2016, and timing will be
dependent on the successful completion of the test and certification
processes, followed by orders under the Agreement. The Company has received
the first purchase order under the Agreement for the initial 3,000 units
which are expected to ship in 2017. UQM will manufacture its electric
propulsion systems in Colorado through 2017 with plans to produce product in
China beginning in 2018. Initially, the PowerPhase Pro(R) 135 electric
propulsion system will be sold to address the 6-8 meter shuttle bus market
in China, with larger delivery truck and transit bus applications slated to
begin in early 2017 with the PowerPhase HD(R) 250 system.
ITL, based in Beijing, China, is a subsidiary of Eastlake New Energy and
responsible for the entire electric drive supply to Eastlake and its
subsidiaries. Because of its operational independence from Eastlake, ITL's
goal is to become a major e-drive system supplier to the entire China
market. ITL has a preferred supplier relationship with Wuhan Public
Transport Group ("Wuhan Bus"), a China state-owned operator of public buses,
operating over 330 bus lines with a fleet of almost 7,000 buses with a goal
to convert much of the fleet to new energy and electric buses. ITL's parent
company, Eastlake, is a holding company based in Wuhan, China whose
subsidiaries include, in addition to ITL, three vehicle manufacturers
(Yixing, Yangtse and Speka), which combined have over 1.6 million square
feet of manufacturing facilities and capacity to produce over 15,000
vehicles a year. With over one thousand hybrid and pure electric trucks and
buses already on the road, ITL will partner with Eastlake to bring
anticipated significant volume of new UQM powered electric vehicles to the
China market.
"The signing of this supply agreement with ITL is a major milestone for UQM,
and is the result of many years of focused attention to the China market,"
said Joe Mitchell, Chief Operating Officer and Interim President and CEO.
"This achievement solidifies our long-term strategy to become a major global
provider of electric propulsion systems; particularly in China, the largest
market in the world for electric vehicles. Attaining this agreement is
testimony to the quality and performance of our products that are second to
none. We are excited to partner with ITL and become a dominant player in the
New Energy Vehicle market in China. We believe this agreement is a game
changer for UQM and puts us on a realistic and timely path to long term
viability and profitability."
Mr. Frank Lee, President of ITL, said, "We have looked extensively for the
most reliable and efficient electric drive technology, and after careful
consideration, we have chosen UQM Technologies as the correct partner for
long term success in the China market."
The Company will file with the Securities and Exchange Commission a copy of
the Supply Agreement as an exhibit to its Report on Form 8-K.
Conference Call
The Company will host a conference call tomorrow, October 27, 2015 at 8:00
a.m. Eastern Time to discuss this announcement. To attend the conference
call, please dial 1-888-241-0326 approximately 10 minutes before the
conference is scheduled to begin and provide the passcode "68512509" to
access the call. International callers should dial 1-647-427-3411. For
anyone who is unable to participate in the conference, a recording will be
available for seven days beginning at 10:00 a.m. Eastern Time tomorrow. To
access the playback call 1-800-585-8367 or 1-855-859-2056 and enter replay
code "68512509#." International callers should dial +1-404-537-3406.
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