(Yicai Global) Oct. 23 -- Thunder Power, a Hong Kong-based new energy vehicle startup, has received an investment from a Belgian investment fund to take over Caterpillar's excavator plant in southern Belgium to launch the car company's first product in the European market by 2020.

Thunder Power confirmed the EUR150 million (USD172 million) deal with Liege-based Sogepa, which will help the car firm to turn on lights again at the site of Caterpillar's factory in Gosselies, the region of Wallonia, the auto startup said in a statement on Oct. 19. The factory is expected to bring nearly 700 jobs to the European country.

The deal has been in the works since representatives from the European asset manager visited Thunder Power's factory in Ganzhou in May and Shen met with the Minister of Economy of Wallonia in July.

Thunder Power will become competitive in the European market, the Belgian investor deemed. Sogepa valued Thunder Power's patented vehicle technology and existing assets at USD2.5 billion before its investment. The pair will aim for Thunder Power to go public on the Hong Kong Stock Exchange or Nasdaq Stock Market by the end of 2019, according to their contract.

The car company's first product, a sedan called Chloe, was named after founder and Chief Executive Wei Shen's granddaughter. It will be launched in Europe in 2020 with 10,000 units produced during the first year and by 2021, the annual capacity will be lifted to 30,000 vehicles. 

Chloe is "European, not Chinese," Shen said, adding that the cars are expected to be exported to the US, South Korea and Japan. The company's second product will be an electric car with a range of up to 650 kilometers.

Editor: Emmi Laine