Mitsui & Co. Plastics Ltd. (“Mitsui & Co. Plastics”, Representative Director & President: Katsunori Mori) and Mitsui Plastics Trading Shanghai Co., Ltd. (President: Jun Hiyama) have reached a basic agreement with Kaji Technology Corporation (“Kaji Technology”, Representative Director and President: Hiroshi Suzuki) and the Dare Group (President: Li Yi) concerning the conclusion of a four-company memorandum providing for the implementation of a joint feasibility study for a hydrogen compressor business, with the aim of supplying locally assembled hydrogen compressors for hydrogen stations in China.

Aware of the potential of hydrogen as a next-generation green energy source to take the place of fossil fuels, Mitsui & Co. Plastics commenced a study in preparation for the launch of a new business in China to supply hydrogen compressors, which are indispensable devices for linking hydrogen production with hydrogen utilization in the hydrogen value chain.

Mitsui & Co. Plastics became aware of the essential role played by hydrogen compressors in the hydrogen value chain as key devices for the creation of a Carbon Neutral society through its collaboration with Mitsui & Co., Ltd., which is working to build the hydrogen-related business, especially in the mobility domain, and has already invested in the Norwegian company Hexagon Composites ASA, the world’s biggest manufacturer of lightweight high-pressure cylinders, and the US company FirstElement Fuel, Inc., which is building a hydrogen station business in California.

The aim of this new initiative is to work with Kaji Technology, Japan’s biggest manufacturer of hydrogen compressors, to expand sales of these devices in China in partnership with the Dare Group, a Tier 1 manufacturer of automotive parts in China, by utilizing the Dare Group’s network of manufacturing and sales sites throughout China, and by combining Kaji Technology’s extensive sales track record and technical expertise in the area of hydrogen compressors, with the Dare Group’s mass-production and marketing capabilities, including its ability to provide after-sales service to customers.

One of the companies in the Dare Group is a manufacturer and supplier of fuel cell systems for fuel cells in forklifts (“FCFLs”). The new business will start with the introduction of hydrogen compressors for use in hydrogen stations for FCFLs as part of the Dare Groups’ own hydrogen fuel cell project. Thereafter, hydrogen compressors will be sold externally for other purposes, including hydrogen stations for fuel cells in vehicles, and hydrogen manufacturing facilities for non-automotive areas. The initiative will be developed into a major business that will contribute to the creation of hydrogen infrastructure, including storage and compression systems, to drive the transition to a Carbon Neutral society in China, as the world’s biggest producer of hydrogen.

Link to the Kaji Technology website: http://www.kajitech.com/en/news_cont/news2021111201_msg01_en.pdf

【Profile of Kaji Technology】

Name	Kaji Technology Corporation
Main shareholder	Mitsui E&S Holdings Co., Ltd.
Representative director and president	Hiroshi Suzuki
Capital	¥1.44 billion (listed on the Second Section of the Tokyo Stock Exchange)
Head office	6 Bodai, Mihara-ku, Sakai-shi, Osaka, Japan 587-0064
Founded	May 1905
Business activities	Compressor manufacturing and sales
URL	http://www.kajitech.com/

【Profile of Dare Group】

Name	Dare Group
Main group company	Dare Auto (listed on the Shenzhen Stock Exchange, Code: 300473)
Representative	Li Yi (Representative Director, Chairman, and CEO)
Employees on a consolidated basis	4,562 (as of December 2019)
Capital	104.92 million yuan (\1.87 billion)
Head office	55 E Road, Economic Development Zone, Fuxin City, Liaoning Province
Founded	1999
Business activities	Development, manufacture, and sales of automotive parts, vehicle-mounted electrical parts, and equipment for new energy industries

【Contacts for further information】

Doumei, Mobility & Products Unit, Mobility Business Unit  T.Doumei@mitsui-plastics.com