VivoPower International PLC announces international distribution agreement for Tembo Electric Light Vehicles
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- Global Mining solutions providers GHH Ggroup GmbH plans acquire 3.000 electric bright vehiclecle Change Kits from the VivoPower subsidiary Tembo e-LV BV above that next 5 years.
- Multinational partnership in over 50 countries is the company’s fifth major distribution agreement and the largest to date by Quantities.
- VivoPower now Has Tembo distribution partner on six continents, with potential obligations total 7,825 e-LV conversion kits.
LONDON, September 14th, 2021 (GLOBE NEWSWIRE) – VivoPower International PLC (NASDAQ: VVPR, the “Company”) is pleased to announce that the Company has entered into a definitive agreement with GHH Group GmbH (“GHH” or the “Distributor “) Has signed”) for GHH the sale of Tembo-powered electric light vehicles (“e-LVs”) in over 50 countries in Africa, Asia, Europe and America using e-LV conversion kits from VivoPower’s wholly-owned subsidiary Tembo e -LV BV (“Tembo”).
Under the agreement (the “Distribution Agreement”), GHH intends to purchase 3,000 Tembo e-LV conversion kits by December 2026, sell the Tembo-powered e-LVs to end customers, and provide ongoing maintenance.
This distribution agreement marks VivoPower’s fifth major distribution agreement in 2021 for Tembo e-LV conversion kits and the largest ever by e-LV kit volume. With the conclusion of this contract, VivoPower can now offer its customers e-LVs with Tembo drives on six continents, as the company is pursuing its goal of building a global Tembo sales network this calendar year. The company has previously entered into distribution agreements with GB Auto Group in Australia, Acces Industriel Mining Inc. in Canada and Bodiz International in Mongolia, as well as non-binding agreements with Arctic Trucks Limited for the distribution of Tembo e-LVs in. announced Norway, Sweden, Iceland and Finland.
GHH, based in Germany, has more than 50 years of experience in the manufacture of robust and safe vehicles for mining and tunneling in hard and soft rock. Based on exclusive technology partnerships with several major industry leaders around the world, GHH brings the latest innovations and product developments to the underground mining market. Working with customers and international partners, GHH develops comprehensive, tailor-made solutions with its constantly expanding range of mechanized mining equipment and a comprehensive range of proven support services. This expertise makes GHH a natural partner for the distribution of Tembo e-LVs for miners looking for bespoke, comprehensive sustainable energy solutions.
The Tembo kits transform diesel-powered Toyota Land Cruiser and Hilux vehicles into rugged e-LVs for use in mining and other hard-to-decarbonize sectors, including construction and defense. In addition to solar power generation, battery storage and on-site power distribution, Tembo’s e-LV products are a key component of VivoPower’s turnkey sustainable energy solutions that help companies achieve their decarbonization goals.
Kevin Chin, Executive Chairman and CEO of VivoPower, said: “We are very pleased to have entered into this cross-border agreement with GHH, a trusted provider of bespoke technology solutions for the global mining industry. This is in line with our stated goal of cementing sales agreements with highly qualified partners such as GHH worldwide. With sales partners on six continents, Tembo e-LVs will be available worldwide to mining customers who want to electrify their light vehicle operations as part of their pursuit of net zero mining. “
Sara Thorley, Global Marketing and Production Manager to the GHH, called: “As a global supplier of heavy mining equipment, we were constantly asked about the possibility of supplying our customers with light electric vehicles. Due to the demand, we started looking for potential partners in this area and after extensive research we decided in favor of the Tembo electrification kit. Primarily, the Tembo solution has electrified the Toyota Land Cruiser and Hilux, which are the number one light vehicle in the mining sector around the world. We are very excited to see what the future has in store for us and Tembo. “
VivoPower is a sustainable energy solutions company focused on electrification solutions for bespoke and robust fleet applications, critical auxiliary power technology and services, battery storage and microgrids, and solar energy. The company’s main purpose is to provide its customers with turnkey decarbonization solutions that will enable them to move towards net zero carbon status. VivoPower is a certified B Corporation with offices in Australia, Canada, the Netherlands, the UK and the USA.
GHH develops and produces load haul dumpers (LHDs) and articulated dumpers as well as scalers and mixers for mining and tunnel construction worldwide. The company’s special vehicles are manufactured according to customer specifications for different requirements, be it for use in soft or hard rock. GHH products support mining companies around the world in the transport of base metals, precious metals, earth and other raw materials. In infrastructure projects, GHH products are used in the construction of road, rail and hydropower tunnels. The combination of GHH load tippers and dump trucks has also proven itself in global tunnel construction in NATM tunneling and when driving small cross-sections, for example for cross passages, hydropower tunnels or safety tunnels and in the construction of power plant tunnels.
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This distribution agreement provides a framework under which VivoPower can enter into sales agreements for e-LV conversion kits for installation in vehicles for sale to customers. According to the distribution agreement, the distribution partner acts as the exclusive distribution partner of VivoPower in the marketing, promotion and sale of electric vehicles in the defined areas (“Areas”) and also assembles and installs e-LV conversion kits provided by VivoPower in vehicles that the distributor has from Original Equipment Manufacturer (“OEM”). The distribution agreement contains a provision that states that the parties have no agency, joint venture or partnership relationship.
The distribution agreement includes the distributor’s obligation to purchase at least 3,000 Tembo e-LV conversion kits (for Toyota 4×4 vehicles) in the first five years of the agreement. This is based on the sales partner’s management estimates of future contractually agreed purchases from their customer base. It is expected that these obligations will be met when the distributor generates these orders for e-LVs from its end customers. The sales partner is not obliged to make payments for his orders for e-LV conversion kits until end customers receive orders for e-LVs or the sales partner is likely to purchase conversion kits before end customer orders. In the event that the sales partner does not meet the minimum purchase obligation, the sales contract is subject to a review process. If no acceptable solution is found, VivoPower is entitled to refuse the distributor’s exclusivity in the territories.
Additional terms governing other aspects of the distribution agreement with the distributor are currently being finalized and will depend on the outcome of trade negotiations with OEM counterparties.
This release contains certain statements that may constitute “forward-looking statements” within the meaning of United States securities laws. Forward-looking statements include, among other things, statements that relate to forecasts, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “can”, “could”, “plan”, “possible”, “potentially” ” predict, “” project, “should,” “would” and similar expressions identify forward-looking statements, but the absence of these words does not mean that any statement is not forward-looking. Forward-looking statements may include, for example, statements about the potential benefits of working with GHH and the number of vehicle conversions that are likely to be acquired as part of such a cooperation. These statements are based on the current expectations or beliefs of the management of VivoPower and are subject to risks, uncertainties and changes in circumstances. Actual results could differ materially from those expressed or implied in the statements contained herein due to changes in economic, business, competitive and / or regulatory factors, as well as other risks and uncertainties that affect the operations of VivoPower’s business. These risks, uncertainties and contingencies include changes in business conditions, fluctuations in customer demand, changes in accounting interpretations, management of rapid growth, intensity of competition from other providers of products and services, changes in general economic conditions, geopolitical events and regulatory changes and other factors, listed in VivoPower’s filings with the United States Securities and Exchange Commission. The information contained herein should be read in light of such risks. VivoPower is under no obligation and expressly disclaims any obligation to update or change its forward-looking statements as a result of new information, future events, changes in assumptions or for any other reason.
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Source: VivoPower International PLC