(Bloomberg) -- Chinese electric-truck startup Windrose Technology Inc. plans to expand in the heart of Europe, manufacturing vehicles in France and Belgium, where it is also considering a listing, according to founder Wen Han.
The company, which has been producing electric trucks in the eastern Chinese city of Suzhou and testing them in places including the US and Europe, is seeking at least $400 million from selling shares in New York and potentially Brussels, said Wen, who is also chief executive officer and chairman.
The initial public offering figure is double the $200 million that Wen said the company was targeting in an interview with Bloomberg News last year. Proceeds would go toward research and development and production of Windrose’s zero-emission, autonomous-driving trucks, he said at the time.
Windrose has moved into an R&D facility in Belgium, Wen said. It’s important to have a presence in Europe, not necessarily because European tariffs are looming over Chinese EV makers, but to better cater to demand, he said, adding that policies around EU tariffs will likely treat electric trucks differently to EVs.
“We could export our trucks out of China, but to offer a better experience for customers, you must have a local presence and customer support,” the 34-year-old said. “So much of our business is in Europe, so it makes sense to be listed in both markets.”
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Windrose is testing its vehicles with companies including retailer Decathlon SA, Goodman Group and Kerry Logistics Network Ltd. The trucks have capability to drive up to 940 kilometers (584 miles) carrying a full payload, with batteries that can charge to 60% in 35 minutes, according to Wen, who was previously chief strategy and financial officer at US autonomous trucking company Plus.
While Windrose isn’t making vehicles in large volumes to compete with the likes of Volvo Trucks, which says it has delivered more than 3,800 electric trucks to customers globally, Wen said the company has received 6,000 pre-orders. Production capacity will reach up to 5,000 trucks by the end of 2025, he said.
Windrose announced in April it had completed the second phase of its Series B financing, raising $110 million from investors including HSBC Holdings Plc and Boston-based HITE Hedge Asset Management.
--With assistance from Danny Lee.
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