ACWA Power increases its ownership in Shuqaiq

Updated 02 April 2014
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ACWA Power increases its ownership in Shuqaiq

ACWA Power announced that their fully owned subsidiary namely Saudi Arabian Water and Electricity Company (SAWEC) acquired a 6 percent indirect shareholding in Shuqaiq Water and Electricity Company (SqWEC) from Mitsubishi Corporation of Japan (MC).
SqWEC owns an 850 MW power generation and 212,000 cubic meters per day of water desalination capacity IWPP Plant in Shuqaiq on the western shores of Saudi Arabia 130 km north of Jazan. The project started commercial operations in May 2010.
Prior to this acquisition, SqWEC was owned by a group of government and private sector investors.
The government ownership was in two parts; 32 percent by Public Investment Fund (PIF) and 8 percent by Saudi Electricity Company (SEC).
The private sector ownership totals 60 percent of the project and was in three parts; ACWA Power (through SAWEC) owning 34 percent, Gulf Investment Corporation (GIC) owning 20 percent and MC owning 6 percent.
The three private sector investors had invested in SqWEC through their holding company Shuqaiq International Water and Electricity Company (SIWEC).
The 6 percent indirect stake of MC in SqWEC was acquired by ACWA Power (through SAWEC) by purchasing all of MC’s shares in SIWEC.
ACWA Power through SAWEC had signed a Share Purchase Agreement for this purpose with MC on July 29, 2013.
Upon completion of the transaction ACWA Power’s indirect stake in SqWEC has increased from 34 percent to 40 percent.
Paddy Padmanathan, CEO of ACWA Power, said: “Acquiring these shares was a part of ACWA Power’s wider strategy to deploy its capital in earnings accretive and value creating transactions. This transaction represented such an opportunity to ACWA Power and furthermore also gave an opportunity to increase its stake in a project which was completed before time and below budget and where ACWA Power is the lead developer. ”
ACWA Power is a developer, investor, co-owner and operator of a portfolio of plants with a capacity to generate 15,979 MW of power and produce 2.4 million cubic meters/day of desalinated water.
The portfolio has an investment value in excess of $23 billion and provides employment to more than 2,400 people in 8 countries.


Philips to close its UK factory in 2020, with loss of 400 jobs

Updated 17 January 2019
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Philips to close its UK factory in 2020, with loss of 400 jobs

AMSTERDAM/LONDON: Dutch health technology company Philips said on Thursday it planned to close its only factory in Britain in 2020, with the loss of around 400 jobs, the latest firm to move manufacturing jobs out of Britain.
The move is part of a push by Philips to reduce its large manufacturing sites worldwide to 30 from 50, and a spokesman said the decision had no direct link with Britain’s decision to leave the European Union.
However, the company said in a statement that it had to “pro-actively mitigate the potential impact of various ongoing geopolitical challenges, including uncertainties and possible obstructions that may affect its manufacturing operations.”
The factory in Glemsford, Suffolk, produces babycare products, mainly for export to other European countries. Almost all its activities will move to Philips’ plant in Drachten, the Netherlands, which already employs around 2,000 workers.
“We have announced the proposal after careful consideration, and over the next period, we will work closely with the impacted colleagues on next steps,” said Neil Mesher, CEO of Philips UK & Ireland.
“The UK is an important market for us, and we will continue to invest in our commercial organization and innovation programs in the country.”
Once a sprawling conglomerate, Philips has transformed itself into a health technology specialist in recent years, shedding its consumer electronics and lighting divisions.
The firm has previously warned that Brexit would put Britain’s status as a manufacturing hub at risk.
Chief Executive Frans van Houten last year said that without a customs union — which has been ruled out by Prime Minister Theresa May — Philips would have to rethink its manufacturing footprint.
Britain is set to leave the EU on March 29, and politicians are at an impasse over how to do so after lawmakers overwhelmingly rejected May’s proposed withdrawal agreement on Tuesday.
Other firms have moved jobs out of Britain in recent weeks, sparking alarm among lawmakers that Brexit is impacting corporate decision-making.
Jaguar Land Rover has slashed UK jobs — mainly due to lower Chinese demand and a slump in European diesel sales — while Ford has said it will slash thousands of jobs as part of its turnaround plan.
While both decisions were driven by factors other than Brexit, each firm has also been vocal in warning of the risks of no-deal Brexit, where Britain leaves abruptly in March without a transition period.