MILAN, July 29 (Class Editori) -- The Board of Directors of Irce has approved the investment project in China aimed at expanding the group's production capacity in the winding conductors sector, with particular reference to the local market for electric vehicle motor production and energy generation and transmission.
Despite the company going through a weak market phase, confirmed by an 11% drop in revenue to 402 million euros at the end of 2023, with a 5% margin, the Casadio family, majority shareholder, has confirmed their commitment to pursuing the strategic plan to focus on sectors with higher growth and more specialized products, including automotive and energy generation and transmission.
Additionally, Irce, led by Chairman Filippo Casadio, will also open a new factory in the Czech Republic this year, which involved an investment of 30 million euros.
The Chinese project will be carried out by the Chinese subsidiary Irce Electromagne-c Wire (Jiangsu), wholly owned by the parent company IRCE, on a plot of land with a fifty-year concession, automatically renewable upon expiration. The investment, which from the 2024-2028 plan includes the construction of a production plant in Hai'an by mid-2025 and the purchase of machinery and equipment, ranges between 15 and 20 million euros based on the revenue growth rate.
Production is expected to start in the fourth quarter of 2025. Pending the finalization of negotiations to specifically finance the project, Irce will support the investment using its own funds and existing lines of credit. IRCE is exempt from complying with the procedural and transparency provisions regarding transactions with related parties, as there are no significant interests of other related parties in the Chinese subsidiary Irce Electromagne-c Wire.
The IRCE Group is a major player in the winding conductors sector for electric machines and the electric cables sector. Production is carried out in 3 plants in Italy and 5 abroad: Nijmegen (Netherlands), Blackburn (UK), Joinville SC (Brazil), Kochi (India), and Kierspe (Germany). The group also includes 5 commercial companies, 4 of which are abroad (Germany, Spain, Switzerland, and Poland) and 3 companies currently not operational (Czech Republic, China, and India). The group employs 680 people globally.
(Source:Class Editori)
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