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Electrical Industries Company (EIC) said its Belgium-based subsidiary, Pauwels Transformers Co., has signed a contract to design, manufacture and supply power transformers for Enedis, the main operator of the electricity distribution network in France.
The contract is valued at 150.4 million ($40.11 million), the company said in a statement to the Saudi stock exchange.
The five-year deal can be extended for an additional three years until 2033.
The total contract value may reach SAR 227.3 million if the extension clause is applied.
The design and manufacturing of the power transformers will be carried out at Pauwels Transformers’ plant in Mechelen, Belgium.
The contract includes a price variation clause to protect the company against fluctuations in raw material costs, the statement said.
The deal will expand EIC’s reach in the European market.
(Writing by P Deol; Editing by Anoop Menon)
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