Plastic Omnium and Shenergy Group subsidiary Rein announced the setting up of a 50/50 joint venture1 based in Shanghai to manufacture and market type III and IV2 high-pressure hydrogen storage systems for the commercial vehicle market in China. Plastic Omnium and Shenergy Group also signed a memorandum of understanding to extend strategic cooperation around building hydrogen eco-systems and contributing to the roadmap for carbon neutrality in China.
The new joint venture gives both partners the opportunity to take full advantage of Plastic Omnium's tech leadership in high-pressure hydrogen vessels, and benefit from Rein’s footprint in the manufacture of hydrogen transportation and storage systems specifically for the Chinese market.
Fully consolidated in the financial statements of Plastic Omnium, this joint venture covers the setup of production capacities in Shanghai (Jiading district) to serve the growing Chinese market: a pilot production line for type IV high-pressure hydrogen vessels will be in place during 2025, and a new mega-plant with an annual production capacity of up to 60,000 high-pressure hydrogen vessels is scheduled to be operational from 2026 onwards.
Laurent Favre, Chief Executive Officer of Plastic Omnium: “As a major player in the energy sector, Shenergy Group is a very special partner with an ambitious hydrogen strategic roadmap for China. This partnership therefore takes Plastic Omnium to a new level in the Chinese market for hydrogenpowered commercial vehicles. We are building the manufacturing capacity we need to seize every opportunity to become one of the major winners in the mobility transformation. It also gives us a solid basis from which to explore new opportunities for further cooperation in the local hydrogen ecosystem.”
Ni Bin, President of Shenergy Group: “In line with the ‘three vertical, three horizontal’ hydrogen energy development strategy, Shenergy Group is committed to building a hydrogen energy manufacturing value chain as quickly as possible. As a global leader in connected and sustainable mobility, Plastic Omnium has strong tech assets in body panels, lighting, clean energy systems, modules and hydrogen. The cooperation between us as partners will make a major contribution to progressing hydrogen technology and manufacturing efficiency. As a leading company in China's hydrogen storage and transportation system industry, Rein will work closely with Plastic Omnium to promote the shift towards hydrogen technology.”
Since 2015, Plastic Omnium has invested more than €300M to ensure that it has the skills, product portfolio and production capacity in place to cover every link in the hydrogen mobility value chain. As a leader in this technology, Plastic Omnium plans to invest an average of €100M annually to achieve revenue generation of €300M by 2025, rising to €3B by 2030.