Saudi Engineering Dimensions Bypasses a Joint-investment Deal and Starts Producing Equipment by Itself
Saudi Arabian company Engineering Dimensions is going to produce transformers and other electrical equipment by itself, as it bypasses a joint-investment deal with Bangladeshi state-owned General Electric Manufacturing Company Limited (Gemco) in 2018.
In this situation, Bangladesh is now revisiting the agreement and trying to find out ways to go into production jointly. The Saudi company had pledged an investment amounting to $35 million for the purpose. Saudi General Electric Manufacturing Company Limited is planning to produce oil-immersed type transformer, dry-type transformer, special transformer, box-type transformer, high voltage switchgear series, low-voltage switchgears series and switch series products in their factory.
A senior official of Gemco said the main objective of the government was to modernise the production system by replacing the dilapidated machines of Gemco through a joint venture. Besides, the target was to export transformers and electrical equipment abroad after meeting the domestic demand. But the formation of a separate company by Engineering Dimensions will undermine the objectives.
"If Gemco is not modernised through investment, the state-owned company is likely to deteriorate further," he said.
Source: tbsnews.net
