Takeover of Caterpillar: Wallonia will support Thunder Power with 150 million euros

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The Board of Directors of Sogepa, the financial arm of the Walloon Region, approved on Wednesday its 150 million euros stake in the creation of Thunder Power Belgium, announced the Walloon Minister for the Economy, Pierre- Yves Jeholet (MR).

The Chinese manufacturer of electric cars, which wants to sell its vehicles in Europe, should settle on the deserted site by Caterpillar in Gosselies. He would set up all his European activities: R & D center, design studio, administrative and marketing center, production and badembly center.

A $ 600 million project

Thunder Power asked for financial intervention from the Walloon Region to settle in Gosselies. The total amount of the fundraising for the project is $ 600 million. the investment plan covers 405 million euros. On the principle of a public euro invested for a private euro, Sogepa and Thunder Power will each bring 150 million. In a second time, Thunder Power will inject only 105 million euros.

The investment of Sogepa will be in several phases, each conditioned by objectives to be reached, specifies the minister. It mainly covers investments in buildings and equipment.

The Walloon Region considers that Sogepa will initially invest through the subsidiary company created in Belgium, even though it will participate in the Thunder Power group's global project, says Pierre-Yves Jeholet

If the Chinese manufacturer settles on the Caterpillar site, some 650 workers will be hired by 2020. Five years later, the workforce could reach "several thousand people". "This is a chance for our Walloon companies because one of the conditions (installation of Thunder Power, NdlR) is the use of a local subcontracting and suppliers from the Region " declares the Minister of the Economy.

In principle, the dismissed workers of Caterpillar should be hired first. The economic redeployment plan carolo Catch, from the Caterpillar site, was badociated with the discussions with Thunder Power

A binding bid will be made in a few days

"This ambitious decision of the council Sogepa's board of directors will allow us to continue and finalize ongoing negotiations with Thunder Power in order to establish the Belgian subsidiary Thunder Power Belgium. In this context, we will propose a binding offer to Thunder Power by July 15 at the latest "says Renaud Witmeur, the chairman of the executive committee of Sogepa.