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French-based manufacturer of electrical products Schneider Electric has acquired a Kenyan firm, Power Technics, for an undisclosed amount.
Power Technics has been operating under a licence from Schneider Electric, manufacturing their products for the local and regional market.
It manufactures power sockets, elevators, and switch board panels among other products.
The Kenyan firm, situated along Mombasa Road, has a workforce of 300. It was started in 1982.
Outgoing managing director Naresh Mehta confirmed the buyout but declined to disclose details related of the transaction.
The top leadership of Schneider Electric is expected to visit Kenya this week.
“The buyout has already taken place but details about how much it cost can only come from Schneider,” said Mr Mehta.
The French multinational has taken over Power Technics’ machinery and staff but will lease out factory buildings which sit on a two-acre land.
The purchase of Power Technics is said to have cost the French manufacturer over Sh1.6 billion, which the Business Daily could not however verify independently.
Employees of the company have already been absorbed on a voluntary basis.
The French company is said to be keen on boosting its production to capitalise on emerging opportunities in East Africa.
It will use Kenya as its manufacturing hub. Power Technics sources raw materials both locally and from France and other Schneider franchises globally.
Schneider Electric is said to have operations in 130 countries with a global workforce of over 150,000.
It operates different divisions including in energy and infrastructure, renewable energies, marine, residential and oil and gas sector units.
It also has interests in metal industries and buildings.
– Business Daily