June 12 (SeeNews) - Croatian electrical equipment manufacturer Koncar Elektroindustrija [ZSE:KOEI] said on Tuesday it signed a deal with China XD Electric Co. to set up a 50/50 joint venture for production of gas-insulated high-voltage switchgear (GIS).
The switchgear manufactured by the the new Zagreb-based company, KONCAR-XD High Voltage Switchgear, will be able to operate at voltage levels from 170 kV to 420 kV, Koncar Elektroindustrija said in a filing to the Zagreb Stock Exchange.
The investment totals some 120 million kuna ($19.2 million/16.3 million euro), out of which more than 60% refers to the share capital of the new company.
The products manufactured by the joint venture will primarily be intended for the European market, with deliveries planned to begin in 2020.
China XD Electric Co., established in 1959, has 14,000 employees and is one of the world's leading producers of power equipment. It is listed on the Shanghai Stock Exchange.
(1 euro=7.38078 kuna)