New Factory Update
22 July 2019
ITM Power plc
("ITM Power" or "the Company")
New Factory Update and Senior Production Appointment
ITM Power (AIM: ITM), the energy storage and clean fuel company, is pleased to announce that it has signed an agreement ("the Agreement") to lease new premises in Sheffield for its global manufacturing headquarters and has made a senior production appointment to support the transition to the new facilities.
The Agreement is for ITM Power to lease a new build development of 134,000 square feet in Sheffield, UK, at PLP Bessemer Park. The manufacturing facility will have an electrolyser manufacturing capacity of up to 1GW (1,000MW) per annum, the largest in the world. PLP Bessemer Park is being developed by PLP. The Agreement commits ITM Power and PLP to enter into a lease at completion of the building, expected in Q4 2019.
PLP Bessemer Park is a new 50-acre development at a strategic location next to junction 34 of the M1 and in close proximity to the Company's existing facilities. ITM Power expects to occupy the building from March 2020 and complete its own technical and industrial fit out and transition the majority of its operations into PLP Bessemer Park by Summer 2020.
The requirement to expand ITM Power's production capacity has been led by the continued growth in the Company's order pipeline. The new headquarters will see ITM Power co-locate into a single building and gain access to a five-fold increase in production space. Key to the selection of the building was the proximity of the grid connection to provide the substantial power supply required for ITM Power's needs, using existing infrastructure near to the location.
ITM Power has been able to take advantage of a new build development in construction that will meet its needs for capacity and production at speed. The new development will include capacity for 140 office-based staff and will accommodate a large production and after sales support workforce. It has the advantage of excellent public transport connections in addition to substantial parking facilities for staff and visitors.
Key to the Company's development strategy is reducing the cost of its product offering through standardisation, process development and production volume. Central to this is the adoption of semi-automated manufacturing equipment for repeat components. These special purpose machines have required significant upfront engineering and verification work as part of an integrated manufacturing system. The planning behind this important step for ITM Power has been underway for some time and has worked in parallel to the search for the right premises. Key to maximising product throughput is the increase in mains power connection available at PLP Bessemer Park. The substantial power connection will enable parallel testing of larger products prior to dispatch.
The Company is also delighted to announce a senior production appointment. Grant Teagle is appointed as Master Production Scheduler and brings significant experience in manufacturing including change management and driving complex projects in production.
Dr Graham Cooley, CEO, ITM Power plc commented: "The move to larger premises and the design of our new manufacturing and testing process has taken some time. I am delighted to be able to announce this key milestone in the project and I do so with confidence that ITM Power and its advisors have done a thorough job in selecting the right premises. The detailed planning that has taken place will pay dividends as we transition our activities to PLP Bessemer Park from the New Year."
Neil Dickinson, Chief Investment Officer at PLP said: "This leasing deal with ITM Power is another example of PLP's capability in delivering high quality industrial units in strategic locations across the UK. We are looking forward to welcoming ITM Power to PLP Bessemer Park."
For further information, please visit www.itm-power.com or contact:
ITM Power plc
Graham Cooley, CEO
Investec Bank plc (Nominated Adviser and Broker) Jeremy Ellis / Chris Sim
Tavistock (Financial PR and IR)
Simon Hudson / Nick Elwes / Barney Hayward
About ITM Power
ITM Power plc manufactures integrated hydrogen energy solutions for grid balancing, energy storage and the production of green hydrogen for transport, renewable heat and chemicals. ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004. In September 2017, the Company announced the completion of a £29.4m working capital fundraise. The Company signed a forecourt siting agreement with Shell for hydrogen refuelling stations in September 2015, which was extended in May 2019 to include buses, trucks, trains and ships, and subsequently a deal to deploy a 10MW electrolyser at Shell's Rhineland refinery. The Company entered into a Strategic Partnership Agreement with Sumitomo Corporation in July 2018 for the development of multi-megawatt projects in Japan. Additional customers and partners include Ørsted, National Grid, Cadent, Northern Gas Networks, Gasunie, RWE, Engie, BOC Linde, Toyota, Honda, Hyundai, Anglo American among others.
Established in 2015, PLP is a specialist UK logistics and industrial property business. The full service platform develops, manages and owns prime-grade UK logistics real estate with in-house management expertise across all key capabilities including acquisitions and sourcing, development, leasing and asset management. The PLP platform is owned by MIRA Real Estate, Peel Group, Ivanhoé Cambridge and its senior management team.
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