In 2024, IEK GROUP plans to invest 6 billion rubles in business development in Russia, first of all - in production modernization. This will concern existing sites and the construction of new ones. The company plans to allocate 2.9 billion rubles for these needs, another 1.5 billion - for construction, and 1.6 billion rubles - for other projects. IEK GROUP actively develops its production sites both using its own funds and with the use of attracted funds.
At the moment, a non-revolving credit line with a limit of 2 billion rubles is being opened for the implementation of the project to develop the IEK GROUP lighting cluster in Kazan.
For the construction of the first stage, attracting a credit line of 1.5 billion rubles is planned, and total investments will exceed 4 billion rubles. For the purpose of purchasing equipment, the possibility of obtaining funds from the Industrial Development Fund is being considered. Furthermore, the issue of applying state subsidies for the production of electronic components is being worked out.
Recall that the LEDEL and FEREKS plants operate in Kazan, producing lighting products: luminaires for street, industrial, commercial, office, architectural, and park lighting. Since 2022, LEDEL, FEREKS, and ARFA form a common business structure within the IEK GROUP holding. 170 types of products (over 8,000 SKUs) are available through a single window.
The implementation of investment plans for modernizing Russian assets acquired in 2023 from Legrand Group will be carried out using own funds. According to Mikhail Gorbachev, Executive Director of IEK GROUP, a total of 1 billion rubles is planned to be invested for these purposes, which will first of all be directed to localizing the production of components previously purchased in Europe.
Furthermore, investments in replacing tooling (molds) for the production of TEKFOR series plastic boxes, which are produced at the enterprise in Ivanteevka, Moscow region, are planned. The production site was acquired by IEK GROUP at the beginning of 2023 - last year production volume increased by almost one and a half times.
The main task of investments in asset modernization is import substitution, as well as the formation of a comprehensive offering for wiring devices, modular and power automation.