The area of Russian enterprises of IEK GROUP has more than doubled over the past two years. Significant growth in production capacity is the result of the company's strategy aimed at localizing product output.
At the beginning of 2022, the total area of IEK GROUP enterprises was 68,000 sq. m. In the same year, the company conducted five M&A deals, among which the most significant were the acquisition of the Russian lighting manufacturer FEREKS and the company "Tekfor", which produces plastic enclosures. The new IEK GROUP enterprises organically integrated into the overall company structure and produce products in demand on the market.
Production growth at IEK GROUP continued in 2023. After commissioning a new workshop in Yasnogorsk, Tula region, and a cable products plant in Troitsky urban district (Moscow), the area of all the company's enterprises exceeded 100,000 sq. m. A significant increase in production capacity required serious investments. For example, the costs for the construction of the complex in Yasnogorsk and the acquisition of high-tech equipment alone amounted to over 1.3 billion rubles. 421 million rubles of this amount is a concessional loan provided by the Industrial Development Fund.
In October 2023, IEK GROUP acquired the Russian assets of Legrand Group: 3 production sites in the Ulyanovsk region with a total area of 49,000 sq. m, including one of the oldest enterprises in the Russian electrical engineering industry, JSC "Kontaktor". IEK GROUP's investments in the development of Ulyanovsk enterprises over 3 years will exceed 1 billion rubles. Also, the production of convectors and underfloor heating by LLC "EBS" came under the company's management.
Furthermore, one of the most powerful testing centers for low-voltage equipment in Russia, previously owned by Legrand Group, was added to the list of IEK GROUP assets. The company received technologies and production capabilities for further increasing the level of localization.
We are not stopping there! A new project to create the company's lighting cluster is starting in Kazan. With the support of the government of the Republic of Tatarstan, the construction of a production and logistics complex is planned, in which over 4.7 billion rubles will be invested.
Up to 50% of IEK GROUP's profit is invested in production development and assortment localization. Every year, the share of products manufactured at the company's Russian enterprises increases, and this is guaranteed availability of products necessary for the economy at our partners' retail outlets, growth of tax contributions to budgets at all levels, and new jobs for Russians.