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KMW (Korea Micro Ware)

In 2019, AMIRA Group and the KMW Company will open a joint venture assembling LED spotlights with annual production of about RUB 1 bn. According to experts, the joint venture may win a significant share of the young Russian LED market with a volume of several RUB bn; however, it will have to compete with leading foreign producers, which, according to various estimate, take up from 60 to 90% of this market.

According to the Agreement signed between the KMW (South Korea) and the AMIRA Group (St Petersburg), the latter will assemble LED lamps and spotlights for public spaces (street lighting, ports and airports, sports facilities, industrial sites) from the Partner's parts at the sites of the AMIRA-SVETOTEKHNIKA LLC in St Petersburg. The AMIRA Group has its own 500 square metre production site where about 50,000 gas-discharge lamps are assembled every year. Full production capacity of the enterprise equals 100,000 lamps per year, says Mr Andrei Saramud, Chairman of the AMIRA Group's Board of Directors. "At the first stage, Complete Knock Down (CKD) assembly will be used. We will receive LED matrices and power supply units for spotlights from South Korea, while housing and compatible hardware will be produced domestically.

Re-equipment of the sites for these purposes is not required”, he explains. In future, Mr Saramud adds, the production will become fully localised. In an interview with a Kommersant Magazine correspondent, Mr Kim Duk-Yong, KMW President, confirmed the Company's intentions with respect to the first stage of the Project and added that further plans were under discussion.

According to Mr Andrei Saramud, the second stage of the Project presupposes building a new plant in the Krasnoborsk industrial area, where the Group has bought 5.7 hectares next to its plant producing pylons for street lighting, which opened on 30 June 2015 (see Kommersant for 05.06.2015). A joint venture is planned here, with KMW owning 50% of it and being in charge of all construction works (production area of up to 5,000 sq. m.), equipping the plant using its technologies and being responsible for final product control. Construction is to commence in the first quarter of 2016 and will take about two years. "The plant will be built in blocks enabling phased launch and varying product ranges in accordance with current demand”, he explains.

"Investments will amount to €10 m and the expected payback period is five years." The output in monetary terms is expected to be about RUB 1 bn in the first years.

The AMIRA Holding designs, manufactures and installs lighting systems of various applications. The Group's estimated turnover in 2015 amounts to RUB 1.5 bn. KMW (Korea Micro Ware) produces telecommunications systems and components, as well as LED systems. The Group's turnover in 2013 amounted to about $350 m.

The Company intends to win about one third of the Russian public area lighting market: ports and airports, street lighting and highways. First deliveries are planned for sports facilities created for the 2018 World Cup and for other sports facilities.

01 July 2015
Kommersant
Investor
St. Petersburg

Investor profile

KMW (Korea Micro Ware)

South Korea

Company's website: www.kmw.co.kr/

T: +82-31-370-8600

Private company

E-mail: info@kmwcom.com

Contact: Kim Duk-Yong, Director General

KMW (Korea Micro Ware) produces telecommunications systems and components, as well as LED systems

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