Akron Holding plans to acquire a transformer plant in the United Arab Emirates from a Saudi company in a deal that might be closed in the third quarter of this year, the Russian company's CEO, Pavel Morozov said.
"We are now engaged in conducting a technical, financial and legal audit on the purchase of a transformer plant located in the emirate of Abu Dhabi. We held negotiations with a well-known Saudi holding. [...] We plan to close the deal in the third quarter of 2024," Morozov said at the Industrial Dialog: Russia - United Arab Emirates business forum at the INNOPROM-2024 forum and exhibition.
Morozov told Interfax that the plant will produce about 10,000 transformers per year. "The plant was built in 2009 by Siemens with Saudi partners. Unfortunately, their partnership did not work out. The plant has idled, not operated for the past two years, but it has the latest equipment, the most modern, advanced lines. We reached an agreement on acquisition with the Saudi holding," he said. He did not disclose the price of the deal.
Akron Holding plans to launch the plant in the first quarter of 2025. Its market will be countries in the Middle East.
"We plan to view our location in the UAE as a hub for sales on the international market," Morozov added.
He said at the business forum that Akron Holding opened a plant to manufacture copper wire rods from scrap metal in the UAE at the end of March.
Akron Holding is a vertically integrated industrial and metallurgical group that, among other things, produces billets and processes ferrous and nonferrous metal scrap in Russia and other CIS countries.
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