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CG form Indonesian joint venture for switchgear

EM News Bureau ,  Saturday, June 15, 2013, 11:52 Hrs  [IST]

CG-SwitchgearCG, an Avantha Group company, and PLNE (PT Prima Layanan Nasional Enjinring) have signed a joint venture agreement to manufacture and commercialize high voltage and extra high voltage switchgear in Indonesia. The joint venture, owned 51 per cent by CG and 49 per cent by PLNE, will be part of CG’s global organisation. PLNE is an engineering company owned by PLN (Perusahaan Listrik Negara), an Indonesian government-owned electricity utility.

The JV includes a technology transfer by CG over a period of five years for the production of the entire range of switchgear for the network from 70kV to 500kV and will be localized through CG’s new manufacturing base in Indonesia. Production is expected to commence in 24 months. The focus of the collaboration is to enhance the sustainable operation of the entire transmission and distribution grid in Indonesia. CG’s equipment portfolio will also include the production of HV and EHV switchyard equipment, the range of SF6 circuit breakers, current transformers, inductive voltage transformers, capacitor voltage transformers and lightning arresters. The products manufactured in the new facility in Indonesia will be distributed through CG’s marketing network in the South-East Asian markets and the Pacific Region.

In a company release, Laurent Demortier, CEO & Managing Director, CG said, “This joint venture is an important milestone in CG’s expansion strategy. We are very proud to team up with PLNE to set up a state-of–the-art manufacturing base in Indonesia. We believe our collaboration will allow the development of a new series of products well-suited for the Indonesian and South East Asian markets.”

CG has been active in the Indonesian market since 1992 and has been a preferred local and principal manufacturer of power transformers with an installed capacity of 10,000 MVA per annum in Indonesia.

The installed power generation capacity of Indonesia is expected to double to 84 GW by 2020. The estimated market base of HV and EHV switchgear equipment in southeast Asia and the Pacific region is predicted to exceed $500 million in the coming years, a statement by CG noted.
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