SHANGHAI, Aug. 30, 2011 /PRNewswire/ -- PowerSav Inc., a provider of new energy solutions to the China market, announced today it will invest in a joint venture company that will initially assemble, then fully manufacture intelligent, renewable energy power systems for sale on an exclusive basis in mainland China and on a non-exclusive basis in Hong Kong and Taiwan. The joint venture company products and technology will be from ZBB Energy Corporation (NYSE Amex: ZBB), a globally recognized leader in storage and power management solutions. The company will build a new state-of-the-art manufacturing center in WuHu City, Anhui Province that will begin operations in early 2012.
The joint venture partners comprising the "China JV Company" (Chinese name registration pending) include, ZBB-PowerSav Holdings, AnHui XinLong Electrical Company (XinLong Electrical) and WuHu Huarui Power Transmission & Transformation Engineering Company (WuHu Huarui).
ZBB and PowerSav have been working together since November 2010 to identify an optimal path and partnerships to enter theChina market. More than 75 potential joint venture partners and 25 cities and governments were diligently screened to determine the ideal joint venture partners and a city and government very supportive of providing a location for "new energy" technology. XinLong Electrical and WuHu Huarui met every criteria established for the joint venture partners, and the city and government of WuHu, demonstrated their strong support by way of providing a host of incentives to locate in their city.
This joint venture enables PowerSav to enter the high growth China market with partners that can achieve a leadership position in what will likely become the largest market in the world for energy storage and power management solutions. The Chinamarket for the products and services from the joint venture company is estimated at more than $20B USD in size by 2020.
"The China market for energy storage and power management solutions is truly immense. Energy generation and distribution challenges that China faces are significant and present an outstanding opportunity for the products that will be produced and sold by the JV Company. The partners provide the leading technology, supply chain, manufacturing capability and market channels to enable the company to secure a significant share of the China market," said Brad Hansen, CEO and Managing Partner of PowerSav. "China is making major investments in wind and solar power and the Company's products will enable significant improvement in renewable energy system utilization and efficiency. The markets for energy storage systems for back-up power and for supplemental power during peak system loads exist now and will experience heavy growth for at least the remainder of the decade. Additionally, existing and future municipal and commercial building micro-grid and Smart Grid policies in China will create tremendous opportunity in the coming years. We are extremely pleased to be a part of the creation of this company."
Key terms of the joint venture include cash and technology capital investments of approximately $13.415 million. PowerSav invested capital will be made through ZBB-PowerSav Holdings Limited, a Hong Kong holding company formed by ZBB and PowerSav. PowerSav will own 40% of its equity interests. Investment from XinLong Electrical and WuHu Huarui will be made through a China holding company named Anhui Xindong Investment Management Limited.
The China JV Company will have an exclusive, royalty-free license to manufacture and sell ZBB's V3 battery (50kW) and PECC (up to 250kW) in Mainland China and a non-exclusive royalty-free license to manufacture and distribute the products in Hong Kong and Taiwan in the power management industry.
ZBB-PowerSav Holdings will provide certain management services to the China JV Company in exchange for a management services fee equal to five percent of net sales for the first five years and three percent of net sales for the subsequent three years.
The joint venture will be established upon governmental approvals from China, anticipated to be received in November 2011.
View the complete press release at PRNewswire