New Delhi: Electrical equipment maker Crompton Greaves (CG) Monday said it has entered into a pact with New Zealand-based Transpower NZ Ltd for supply of transformers, with a potential to supply equipment worth USD 15 million per annum.
“CG, has signed a long-term supply relationship agreement with Transpower NZ Ltd, owners and operators of the New Zealand national grid. With this agreement, CG becomes the first of three preferred vendors to supply transformers to Transpower, with the potential to scale to orders worth USD 15 million annually," the company said in a statement.
The transformers are being manufactured at CG's Jakarta, Indonesia facility, it said.
As recognition of CG?s operations in South-east Asia and Australasia and its expertise in transformer technology, this tie-up in New Zealand will boost the company's position in the region, especially in the promising smart grid technologies, it said.
CG CEO and Managing Director Laurent Demortier said, "The long-term agreement with Transpower is recognition of our long relationship with them. Our expansion to 500 kV transformers for large customers in SEA built a high degree of confidence with Transpower, and led to the inking of this agreement.
"This deal serves to strengthen CG?s position and will help us win new orders in this emerging and fast-growing geography."
The company added that the agreement will remain in force for five years with the possibility of two extensions of two years each.
With operations in 85 countries, CG provides electrical products, systems and services for utilities, power generation, industries, and consumers.
The company is organised into four business groups: Power, Industrial, Automation and Consumer and clocks USD 2.3 billion in revenues.