ACE bags contract to develop assembly plant at $24.98 mn

Under Regulation 30 of the Securities and Exchange Board of India (SEBI) Listing Obligation and Disclosure Requirements Regulations 2015, Action Construction Equipment Limited (ACE) has been awarded with a contract to set up an assembly plant for manufacturing tractors, backhoe loaders and fabrication of agricultural implements for the Government of The Republic of Ghana at $24.98 million.

The company has secured the contract through a credit agreement between the Government of The Republic of Ghana and Export-Import (EXIM) Bank of India.

The project will be wholly-owned and operated by the Government of The Republic of Ghana.

The project work includes designing, engineering, and commissioning the assembly lines and supplying plant and machinery for the manufacturing unit, including transferring the technical know-how, establishing best-in-class manufacturing processes and best quality control systems, and training engineers and technicians from the Government of The Republic of Ghana for future operations.

The assembly manufacturing facility will be designed for an installed capacity of 4,500 tractors, 600 backhoe loaders, 6,000 agricultural implements and 3,000 tipping trailers per year.

Additionally, the contract includes supplying an initial pilot lot of tractors, backhoe loaders and agricultural implements in completely knocked down (CKD) form for manufacturing.

After commissioning the plant, the prices for the CKD kits shall be applicable according to the prevailing market rates during supply.

After completion, the project will play a vital role in the export markets in the African continent region for the products and augment the company's global efforts.

ACE will deliver the state-of-the-art assembly plant and strengthen the vision of the Government of moving forward with the Make in India and Make for the World goals.

Image Source

Also read: S Agarwal of ACE: We plan to double our production capacity

Related Stories

NTPC Green Energy gets Sebi nod for Rs 100 Bn IPO

The IPO with a face value of Rs 10 per equity share is entirely a fresh issue of equity shares.

SEBI to regulate providers of fractional ownership in real estate

This is to protect small investors from falling prey to mis selling

Maharashtra's amnesty scheme to help unlock Rs 35k cr stuck loans

Maha’s amnesty aimed at kick-starting stalled slum rehab projects