Hyzon Motors acquires Orten Group to expand its operations in Germany
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- Through the transaction, Hyzon aims to expand its operational presence in Germany, gain customer access and establish itself in the attractive German zero-emission truck market, increase its expertise in electrification and powertrain kits, and expand manufacturing capacity.
- The Orten Group has nearly a century of experience in the body and truck and trailer industries. Orten is one of the pioneers in the electrification of new and used commercial vehicles from diesel drive to zero-emission electric drive. With this, Orten supports CO2-free mobility worldwide.
Hyzon Motors (NASDAQ: HYZN), a global provider of zero-emission commercial vehicles powered by hydrogen and fuel cells, announced the signing of a legally binding purchase agreement of Orten Betriebs GmbH and Orten Electric-Trucks GmbH (together "Orten"). Orten is an innovative German truck and body manufacturer specialising in the beverage industry. Closing of the purchase agreement is expected in the fourth quarter of 2022.
Through the acquisition, Hyzon will take over three successfully established production facilities and a team of over 80 employees. The Orten employees have many years of experience in the areas of electrification, conversion and in the production of innovative superstructure solutions. This knowledge is of great importance for Hyzon's hydrogen fuel cell technology. In addition, Orten Management has extensive, long-standing customer relationships throughout Germany.
The complementary products of Hyzon and Orten, in combination with the Orten body and conversion kits, offer customers a holistic solution for the transformation to electric battery or fuel cell powered trucks. Vehicles up to 26 tonnes can be converted to battery-electric propulsion from Orten Electric trucks to zero-emission propulsion (BEV), while other medium- and heavy-duty trucks and truck-trailer combinations can be made zero-emission with Hyzon's hydrogen fuel cell technology (FCEV).
Germany is expected to become a major global market for zero-emission commercial vehicles in the future. The European Union recently announced a ban on the sale of cars with combustion engines from 2035. Germany offers various incentives for switching from diesel to zero-emission propulsion for heavy-duty commercial vehicles. These include subsidies of up to 80% for the cost of converting to electric propulsion compared to the purchase of a new diesel equivalent. Municipal fleets are subsidised even more in some cases.
"We are proud to add such a respected manufacturer of innovative and zero-emission vehicle technology for the German logistics industry to our team and expansion." Craig Knight, CEO of Hyzon Motors, said. "We look forward to working with the Orten team and accelerating Germany's transition to zero emissions through hydrogen fuel cell technology, deepening Orten's customer relationships in the beverage industry and bringing the potential of Hyzon developments to the table."
"We have a nearly century-long history of providing innovative solutions to our commercial and municipal customers and are proud and grateful to partner with Hyzon to create a better future," added Robert Orten, long-time owner and CEO of Orten Group. "As one of the first movers in battery electric trucks, we now have the opportunity to expand our proprietary expertise in electrification and body engineering. I would like to thank my employees, customers and suppliers for their many years of loyalty and look forward to a successful collaboration with Hyzon."
