Valmet Automotive's press release on August 27, 2009, 4:45 p.m. local time
Valmet Automotive and the Norwegian company Think Global AS have signed a letter of intent under which Valmet Automotive will be a production and engineering partner for the Think City electric vehicle.
According to the letter of intent the manufacturing of Think electric vehicle will be transferred from Norway to Valmet Automotive's factory in Uusikaupunki, Finland, this year. Valmet Automotive will also become a minor shareholder in Think to indicate its commitment to Think's future development and long-standing cooperation.
Think City is an electric urban car that is suitable also for highway driving and can travel 140 km on a single charge. The car already has a sales network in Europe and is ready for mass production. Its current order backlog will be transferred to Valmet Automotive's factory for production.
Valmet Automotive will be responsible for production transfer, manufacturing engineering and logistics, and it will be involved also in the product development of the car. The investments in commencing the production are about EUR 3 million. The planned production volumes are several thousands of cars per year. The launching of cooperation employs about 50 people in autumn and more than 100 people in 2010.
"The partnership with Think supports our know-how in the manufacturing and development of electric cars," says Valmet Automotive President Ilpo Korhonen. "We will soon be manufacturing three different electric vehicles: the Think electric car, the Fisker Karma luxury hybrid and the Garia golf car. The expertise gained from these projects furthers the development of our electric vehicle business alongside conventional vehicles."
For further information, please contact :
Ilpo Korhonen, President, Valmet Automotive, tel. +358 204 84 8001
Think is a pioneer in electric vehicles and a leader in electric vehicle technology, developed and proven over 19 years. It is one of the few companies that has a "ready-to-market" fully electric vehicle, the Think City. Think is also a leader in electric drive-system technology. The largest investor in Think is Ener1, Inc, which is the parent company of EnerDel, a leading manufacturer of automotive battery systems.
Valmet Automotive is a provider of automotive engineering and manufacturing services of premium cars. In 40 years the company has produced over 1,100,000 high-quality vehicles in Finland. The cars have been delivered worldwide. Today Valmet Automotive manufactures Porsche Boxster and Porsche Cayman for Porsche AG. The manufacturing of Fisker Karma hybrid vehicle and Garia golf car starts in 2009. The company is a part of Metso.
It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for customer industry profitability and investment willingness, expectations for company growth, development and profitability and the realization of synergy benefits and cost savings, and statements preceded by "expects", "estimates", "forecasts" or similar expressions, are forward-looking statements. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by the company.
Such factors include, but are not limited to:
(1) general economic conditions, including fluctuations in exchange rates and interest levels which influence the operating environment and profitability of customers and thereby the orders received by the company and their margins
(2) the competitive situation, especially significant technological solutions developed by competitors
(3) the company's own operating conditions, such as the success of production, product development and project management and their continuous development and improvement
(4) the success of pending and future acquisitions and restructuring.