Visedo signs up to access China’s booming EV market
Our client Visedo, Finnish manufacturer of heavy duty electric drivetrains, has signed a letter of intent to help the company access the booming electric vehicles market in China.
Visedo CEO Kimmo Rauma recently signed an understanding with VC and private equity fund management company, Beijing Capital Investment, to continue discussions for an investment into and cooperation with Visedo to manufacture and sell electric drivetrains in China.
The letter of intent was signed during the official visit of President of the People’s Republic of China Xi Jinping to Finland, during the leader’s meeting with President of Finland Sauli Niinistö.
China is pursuing clean technology innovation as part of the nation’s 13th Five-Year Plan and the related National Strategic Emerging Industries Development Plan, announced by President Xi last year. Within that time, China is expected to be the world’s single largest electric vehicle market.
The state-owned BCI selected Visedo as one of its candidate portfolio companies to enter discussions for the Finnish company’s advanced technologies, innovation capabilities and expertise in developing hybrid and electric drivetrain solutions for the commercial and passenger vehicle sectors.
— Visedo (@VisedoPower) April 11, 2017
Visedo CEO Kimmo Rauma said of the deal:
“The revolution to electrify the world’s transport is already underway and China is doing more than most to make this a reality. The Visedo team understands that as the world’s largest market for electric vehicles, China is crucial for Visedo’s push to ensure hybrid and electric drivetrains are the heart of more commercial and heavy duty transport solutions worldwide.”
“China has been a key market for Visedo, and we’ve been pursuing business opportunities there since 2012. For Visedo to have a local venture capital investor like BCI represents not only the necessary capital contribution for growth and expansion but also having a door-opener to the Chinese market, through its business networks with potential Chinese clients, OEM factories and policy makers.”
Beijing Capital Investment Company Vice President Lu Wenyi said:
“With its high-speed growth, China is the world’s largest EV market. As one of the leading Chinese venture capital players, we are actively engaged in investment into cleantech and renewable energy.
“We are glad to explore the collaboration with Visedo based on its technologies, innovation capabilities, expertise and most importantly, its ambition to play an active role in the Chinese market.
Founded in 2009, Visedo is a Finnish company specialising in electric powertrains and components for the marine industry, commercial vehicle and heavy-duty machinery sectors. Visedo powertrains are suitable for hybrid and electric systems within the power range of 30-2,000kW. Visedo’s head office is located in Lappeenranta, Finland, and the company has a subsidiary in the Netherlands. Visedo has a broad, international client base, with exports to Europe and Asia representing 90 per cent of its sales.
About Beijing Capital Investment
Founded in July 1998, Beijing Capital Investment Co Ltd. (BCI) is one of the first VC/PE firms in China. Experience in financing domestic small businesses and an in-depth understanding of local capital markets allow BCI to invest successfully in Chinese startups and growth-stage companies with its key businesses including VC/PE investment, VC/PE fund management and mergers & acquisition investment. Sinord Capital Fund, sponsored by BCI and Sinord Capital, is a private equity fund focusing on investing in Nordic later-stage growth companies with significant potential in the Chinese market.