Assuming approval of the deal by the governmental agencies engaged in the antimonopoly regulation, the joint venture will seek to develop Electroshield Samara on the basis of the company’s assets. RDIF and Schneider Electric have decided to invest at least $47 million in the development of the company. RDIF representatives will be included in the Board of Directors of the joint venture and will participate in key management decisions.
Currently, Electroshield Samara is implementing a comprehensive program of modernization of production in order to strengthen the competitive position of the enterprise on the Russian market of electrical equipment, which capacity is estimated at around $2.3 billion. The joint investments of RDIF and Schneider Electric will contribute to the modernization of the manufacturing process, development of new equipment, and improvement of customer service of Electroshield Samara.
The new investments contribute to the creation of competitive domestic equipment based on Electroshield Samara’s own research and development.
“The creation of a joint venture for the development of Electroshield Samara is the next step towards strengthening cooperation with our French partners. Investments are aimed at creating new competitive domestic electrical equipment, introducing best production practices and realizing the export potential of the company’s products”.said Kirill Dmitriev, CEO of the RDIF
“Our strategic partnership with the Russian Direct Investment Fund will allow Electroshield Samara to continue the production modernization, introduce technological innovations and expand the geography of its projects. Electroshield Samara will follow its strategy, and will be fulfilling all obligations to employees, partners, and customers,” said Leonid Mukhamedov, Chief Strategy Officer, Schneider Electric, Chairman of the Board of Samara Electroshield.
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