New Delhi, Oct 13 (UNI) Country's third largest transformer maker EMCO Ltd and South African firm Edison Corporation today signed an agreement to jointly set up a transformer manufacturing unit in Johannesburg, with 60 million dollars investment in a phased manner.
''We will jointly invest 60 million dollars in the JV firm, which will be set up in a phased manner...it will be operational in a three-month time,'' Edison Corporation Chairman Vivian Reddy told UNI.
EMCO has a majority stake of 51 per cent in the JV called ''EMCO-EDISON Transformers (Pty) Ltd'', with Edison holding the rest of the share.
Talking on the sidelines of the third IBSA Business Summit 2008, Mr Reddy said the JV will manufacture all range of transformers up to 20 MVA with an annual capacity of 2,000 MVA transformers, initially.
''The JV will be setting up state-of-the-art transformer manufacturing unit in Gauteng province of South Africa...it will supply all range of transformers in South Africa and neighbouring countries,'' he said.
''Once the plant gets operation, the JV targets a turnover of 150 million dollars over a three-year time,'' Mr Reddy said.
Meanwhile, EMCO Ltd Chairman Rajesh Jain said, ''The ultimate aim will be to produce whatever EMCO is doing in India like transformers, meters, and towers.'' Mr Jain said the negotiations are on with the suppliers for the required plant and equipment.
The agreement was signed during the third IBSA Business Summit in presence of Commerce Minister Kamal Nath.
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