Utec set to establish SAR 37 mln JV in Algeria

Saudi Arabia-based Bawan Company approved on Tuesday a proposed deal of its affiliate United Transformers Electric Company (Utec) to establish a SAR 37 million​ ($9.9 million)​ ​joint venture in Algeria.

 United Technology Electric LLC​,​​will be 49-percent owned by Utec and 49 percent by Algeria-based Industry Technology Electric LLC.

Algeria-based United Electro Industry LLC will hold the remaining two percent, Bawan said in a filing to Tadawul, Saudi Arabia’s bourse.

United Technology will specialize in producing all types of electric transformers, electric distribution stations, low, medium and high voltage electric distribution panel-boards, cutters, electric wires and cables.

The Algerian Company is expected to start its commercial production of transformers and electric stations in Q4-2016 at an annual capacity of 24,000 units.

Bawan currently holds an 85.5 percent indirect interest in Utec, and will finance its share of the project internally​, it added​.