By Olivia Bugault

 

ElringKlinger AG shares rose Thursday after news that the German supplier is partnering with Airbus SE to develop fuel-cell technology for the aviation market.

At 0800 GMT, ElringKlinger shares were trading 18% higher at EUR8.45.

The long-term partnership between the European aircraft maker and ElringKlinger will include a joint company in which ElringKlinger holds a noncontrolling interest, it said late Wednesday. Airbus will own the majority stake.

"[The] news is a clear positive for the sentiment as it shows that Elring seems to have a competitive product in place," Commerzbank analysts said, though they don't expect much mid-term financial impact.

Under the partnership, ElringKlinger will receive compensation in the low-to-mid double-digit million euro range. In return, it provides access to technology useful for hydrogen-powered fuel cells.

 

Write to Olivia Bugault at olivia.bugault@wsj.com

 

(END) Dow Jones Newswires

October 15, 2020 04:33 ET (08:33 GMT)

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