On Friday, December 8, Hidroelectrica signed the framework contract for “the transfer of business from the Reșita Machine Building Plant (UCMR) to the company”, according to a press release.
The transaction aims to secure UCMR’s asset base, unique in South-Eastern Europe and essential in streamlining Hidroelectrica’s maintenance and re-engineering activities.
According to the press release, the business transfer includes the takeover of the ABC industrial production platform, the partial takeover of the Câlnicel production platform, the integration of the plant’s specialists in the field of design, technology and execution, the assimilation of project know-how together with the documentation from UCMR’s own archive , as well as taking over the assets/equipment with machine tools and machinery necessary for the execution of new, complex equipment or the repairs and re-technological improvements of equipment in operation.
The transaction is one of historical importance because it will allow Hidroelectrica to own in its own portfolio both the equipment and the know-how necessary to carry out the investment program. Joining UCMR’s equipment design and production capabilities with Hidroserv’s assembly and maintenance capabilities will have a direct positive effect on cost control and the duration of execution of modernization, retrofitting and maintenance works.
“The initialing of the documents is another step towards bringing into our company’s portfolio a unit whose tradition exceeds 250 years. The know-how and experience of UCMR, a company that has contributed over time to equipping approx. 80% of Hidroelectrica power plants , will open new opportunities through the integration with Hidroserv. We want to create a company with top performance, able to provide services not only for the parent company, but to be really competitive in the national and international profile markets. We believe there is potential, we believe in sustainable growth and we act in this sense as a team,” said Karoly Borbely, president of the Hidroelectrica Directorate.
The transaction is to be completed by fulfilling a series of suspensive conditions, which include – among others, its approval by the shareholders at the Hidroelectrica GSM. The total price for the transfer of the ownership of the business and all the assets included in the transaction is 67,879,000 RON.
UCM Reşița is located in the municipality of Reşița in the southwestern part of Romania, on the Bârzava river valley. The factory began its activity on July 3, 1771, when two furnaces and the forge were put into operation. As it stands today, it is the result of a long experience in the field of machine construction in terms of energy, metallurgical machinery, diesel engines and electric machines. UCM is the largest enterprise in Resita and Caraş-Severin county, but also in the western part of the country.
Hidroelectrica is the largest producer of green energy in Romania and provides essential technological services for the National Energy System. The company, crucial for a strategic sector with national security implications, operates 187 plants with a hydropower capacity of 6.3 GW and – in addition, owns a wind farm in Crucea with an installed capacity of 108 MW.