- The Romanian company will install a gas plant in Egypt + At the same time, it launched a subsidiary in Saudi Arabia
Romelectro, one of the most well-known Romanian entrepreneurs on the external markets, resumes its expansion. Since the 70s, Romelectro was one of the companies supporting energy industry of the Northern Africa, and particularly of Algeria.
These days, Romelectro announced it is leading a consortium with two other Romanian companies, for the installation of a 1,200 MW gas plant in Egypt; the contract value is about EUR 30 million. “We were entitled in Egypt to execute an installation project for a combined cycle gas plant. 200 Romanian people will be involved in this work, out of a total of 1,000 workers. Works will start at the late September and will end in next August”, the Romelectro Group General Manager Cristian Secosan stated at a press conference. The plant will be located on the Mediteranean Sea shore, 100 kilometers east of Alexandria.
Egypt has an extremely ambitious plan for increasing the electric energy capacities production, in order to cover growing consumption. At this moment, Egypt has an installed power of 30,000 MW for energy production and plans to build 12 gas groups, 1,200 MW each of them. In addition, it estimates another 4,600 MW produced by coal and 5,000 MW coming from renewable sources. Secosan also stated that Romelectro is the favorite in the race to win a contract financed by the EBRD to conduct electrical lines in Kosovo and that it set up a subsidiary called Romelectro Arabia in the Saudi Arabia, jointly owned with a local partner, in order to win contracts for producing electrical lines and stations.
Romelectro establishes its camp in Saudi Arabia and intends to expand itself into the neighbor countries, such as Qatar, UAE or Kuwait, also said the manager of the company. Romelectro has an operating licence in Saudi Arabia and it’s going to open its subsidiary very soon. The company’s priorities are both the export (where it began to win contracts) and participating to Romanian industry investments. “Most of the companies in the market we are operating in are in insolvency, liquidation or they had great loss, and their turnover was collapsed. This happened because of the lack of projects. Everybody sees the export as an El Dorado. Eximbank should become a bank for development, it should support the Romanian companies to win projects abroad, since the opportunities are there” highlighted Secosan. On the internal market, Romelectro aims to win projects related to energetic efficiency, costs adjustments, electricity distribution, cogeneration plants, and electrical installations. Last year, Romelectro had a turnover amounting EUR 50 million, marking a growth of almost a third comparing to EUR 38 million in 2014. In 2015, the company had a loss of more than EUR 1 million. It’s not such a great loss, considering that at this moment we have good projects portfolio, Cristian Secosan estimated.