EIC subsidiary signs SAR 150.4M power transformer manufacturing deal

Logo of Electrical Industries Co.

Electrical Industries Co.’s (EIC) Belgium-based subsidiary, Pauwels Transformers Co., signed a framework agreement worth about SAR 150.4 million (tax exclusive) with Enedis, the main operator of the French electricity distribution network, to design, manufacture, and supply power transformers for the network.

In a statement to Tadawul, Electrical Industries pointed out the five-year contract can be extended for an additional three years until 2033.

The total contract value can reach approximately SAR 227.3 million, if the optional extension clause is applied.

The deal includes a price adjustment clause to protect against fluctuations in raw material costs. It is bound to have a positive financial impact on the company’s financial results as of 2027, the statement noted.

The contract underpins the company’s strategy to expand in the European market. The design and manufacturing of the power transformers will be carried out at Pauwels Transformers’ plant in Mechelen, Belgium.

There are no related parties to the deal, the statement confirmed.