Both acquisitions represent our first step towards market leadership in Southeast Asia.
Elsewedy Electric has completed the acquisition of (i) 95% of PT CG Power Indonesia, a prominent manufacturer of power transformers in Indonesia and (ii) 100% of Validus Engineering, a leading transformer manufacturer in Pakistan, marking Elsewedy Electric’s first step towards market leadership in Asia, as the company further extends its global reach as a pioneer in innovative integrated energy solutions, cables and electrical products.
PT CG Power Indonesia is the market leading manufacturer of power transformers from 11 kV-10MVA with production capacity of 10,000 MVA and a specialty in mobile substations. The company also provides power transformer life cycle services, delivery & installation.
The journey of Elsewedy Electric started in 1938 and this important acquisition is bringing together close to 200 years of Industry experience. That will also bring the transformers business line of Elsewedy Electric to a combined experience of 25 years with transformers manufacturing up to 500 MVA, 550KV, supplying to more than 40 countries around the world. The combined production capacity will reach 30,000 MVA per year through 6 state-of-the-art manufacturing facilities extending throughout the Middle East, Southeast Asia & Africa, producing the complete range of Power and Distribution transformers (Dry and Oil Type), achieving annual revenue of around $350 Million.
It is important to mention that, by virtue of this transaction, Elsewedy Electric has also acquired the technological know-how, intellectual property, copy rights, titles, design software, design manuals and engineering tools that were created under the umbrella of Unipower of Pauwels Belgium for worldwide use and applications.
Therefore, Elsewedy Electric has the full rights to continue to use the processes, manufacturing philosophy, testing and quality management systems that were developed and implemented under the umbrella of Pauwels Belgium over roughly the last 3 decades.
Validus Engineering is a leading transformer manufacturer in Pakistan, a highly protected market that is on a very steep growth trajectory. Elsewedy Electric plans to introduce its Power Transformer technology to boost the growth of the company. This acquisition will entail an intensive capital expenditure plan to further enhance the capabilities of the company and bring its power transformer capacity up to 5,500 MVA
In addition, the acquisitions will further enhance the company’s ability to meet the diverse, sophisticated needs of its clients while also extending its reach into new markets with significant potential for even wider expansion to additional untapped markets.
With a proven track record of successful acquisitions worldwide, Elsewedy Electric ensures a collaborative international business environment through the thoughtful merging of corporate cultures, shared business understanding among employees, and transfer of knowledge with PT CG Power Indonesia.