June 16, 2020
Itzik Wolf ● Journalist ● News1
Electra Consumer Products will sell heating systems valued at approximately NIS 300 million over 5 years to a leading European company. In addition, the European company will invest approximately NIS 7 million in development and construction of the production line
Electra Consumer Products reported to the Stock Exchange (Tuesday, June 16, 2020) that it has signed an OEM contract with a strategic customer, one of the leading companies in Europe, for the development and production of heating systems. As part of the agreement, the customer has undertaken to purchase heating systems valued at approximately NIS 300 million over 5 years.
Further, in the framework of the agreement, the customer has undertaken to invest approximately NIS 7 million in product development in Israel and in the establishment of a dedicated production line in cooperation with Electra Consumer's development department. The development of the production line is expected to continue for about a year, and production operations from the company's plants in Israel are expected to begin in the course of 2021.
Last month, Electra Consumer reported its financial statements for the first quarter with growth in revenue of approximately NIS 643 million and a jump in net profit to approximately NIS 27.3 million.
Zvika Schwimmer, CEO of Electra Consumer, mentioned that the new agreement is a collaboration that constitutes a leap forward in Electra's export activities. “We are proud of this agreement and consider it an expression of trust in the Electra brand and in the development and engineering capabilities of the company’s development department. The heating systems produced under the agreement are at the forefront of technology, characterized by very high energy efficiency and supported by a supportive regulatory environment aimed at replacing existing products with environmentally friendly products", he said. In his opinion, the heating systems sector is a very significant growth engine for Electra for the coming years. “The company's activities in this area are expected to be comparable at least to the scope of our refrigeration systems activities, "he noted.