Hexagon Purus and CIMC Enric have previously signed joint venture agreements in 2021 (ref: March 2, 2021, announcement) encompassing cylinder and systems production for Fuel Cell Electric Vehicles (FCEVs) and hydrogen distribution in China and Southeast Asia, which is expected to become the zero emission hydrogen vehicle and distribution market. On March 28, 2022, Hexagon Purus and CIMC Enric announced the signing of investment agreements to establish a joint production facility in Shijiazhuang, Hebei and the CIMC-Hexagon New Energy Technologies management office and engineering hub in Beijing Daxing District International Hydrogen Development Zone. In addition, the Shijiazhuang and Beijing Daxing governments have made a strong commitment to support the development of the CIMC-HEXAGON business in their regions through 2030.

Construction of the new composite cylinder and systems manufacturing facility in Shijiazhuang is expected to commence in Second Quarter 2022, and the facility will house Type 3 and Type 4 hydrogen cylinder production and systems assembly capacity. The CIMC-HEXAGON New Energy Technologies management office and engineering hub will be located in Beijing Daxing District International Hydrogen Development Zone, one of China's leading areas for advancement of hydrogen technologies and application scenarios. The facilities will set a benchmark for highly automated production of composite hydrogen pressure vessels from 350 to 700 bar intended for the Chinese and Southeast Asian markets.

The product portfolio includes hydrogen fuel storage systems for on-road vehicles, rail and maritime applications. The new facility is expected to create several hundred jobs in Shijiazhuang and Beijing and will also support business for regional suppliers. CIMC-HEXAGON, together with local Shijiazhuang authorities expect to initiate construction of the facility in Second Quarter 2022.