Summary
Bloom Energy Corporation (BE) has announced a significant strategic partnership through a joint venture with SK Engineering & Construction Co., Ltd. (SK E&C) to establish a light-assembly facility in South Korea. This facility, expected to be operational by mid-2020, will focus on assembling portions of the Bloom Server for the stationary utility and commercial and industrial markets within South Korea. This move is a key step in expanding Bloom Energy's international presence and solidifying its position in the growing South Korean energy market. The joint venture structure places Bloom Energy in majority control and management, while leveraging SK E&C's established distribution network and market presence in Korea. Notably, SK E&C will serve as the primary customer for the products assembled by this new facility, providing a guaranteed demand stream. The funding of the joint venture will primarily come from SK E&C, with a nominal initial capital contribution from Bloom, indicating a favorable financial arrangement for Bloom Energy.
Key Highlights
- 1Bloom Energy enters a joint venture with SK Engineering & Construction Co., Ltd. (SK E&C) to establish a light-assembly facility in South Korea.
- 2The facility will focus on assembling portions of the Bloom Server for the stationary utility and commercial/industrial markets in South Korea.
- 3The joint venture is expected to be operational by mid-2020, contingent on closing conditions.
- 4Bloom Energy will maintain majority control and management of the joint venture.
- 5SK E&C will be the primary customer for products assembled by the facility, utilizing its existing distribution network.
- 6SK E&C will be the main funder of the joint venture, with Bloom making only a nominal initial capital contribution.