LESS S.A. The Management Board of Groclin S.A. informs that on 22nd and 23rd December 2014 it received two letters of intent concerning strategic projects for the Controls business unit, which will be executed at Kabel-Technik-Polska Sp. z o.o., a subsidiary of the Issuer. The total amount of the projects equals EUR 81.75 million, i.e. app. PLN 350 million.
Both letters of intent are milestones for the company's development in the industry and open the doors to two of the greatest railway markets in the world: Swiss and Russian.
The first letter of intent concerns production of electric cabinets for SBB (Schweizer Bundesbahn). The cooperation with Power Converter Solutions GmbH from Berlin (a company of Knorr-Bremse group) is envisaged to last until 2029 and includes production of electric cabinets for 1,108 railway carriages, for the total amount of EUR 71 million, i.e. more than PLN 300 million (all options under the given letter of intent). In the first stage, KTP shall deliver until the end of 2019 electric cabinets for 384 railway carriages, of total value amounting to EUR 25 million, i.e. app. PLN 105 million. The end buyer of the cabinets is Bombardier Transportation, and the deliveries shall be performed to two production facilities located in Germany and Switzerland.
The second letter of intent concerns cooperation with Bombardier in the Russian market. The cooperation relates to development and supply of electric cabinets and electric wiring for railway carriages and locomotives produced by Bombardier. The project will be realized for the benefit of First Locomotive Company LLC, who is a joint arrangement of Bombardier and a local Russian partner. Under the letter, KTP shall develop and deliver products for 100 locomotives, of total value amounting to EUR 10.7 million, i.e. app. PLN 46 million. The deliveries will commence in the beginning of 2015 and last until the end of 2017. The order shall be fulfilled by KTP, who is a strategic partner of Bombardier for the supply of electric wiring and steering cabinets for locomotives.
As a result of the aforementioned decisions, KTP expects a rise of orders for electric cabinets and wiring in the coming years.
Further information:
Board office
Magdalena Chicewicz-Gemba
Tel: +48 61 4436 114
e-mail: office@groclin.com
Groclin S.A. historically is known as one of Europe's leading manufacturer of seat covers and car accessories. From 21 June, 2013 when Kabel-Technik-Polska Sp. z o.o. was acquired in a reverse takeover transaction, Groclin Group offers also wire harnesses and electrical cabinets. Groclin Group delivers now its products to customers operating in the energy, transportation, construction, automotive and telecommunication industries.
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