Action Construction Equipment bags contract in Ghana; Stock dives 4.5%

20 Jun 2022 , 03:19 PM

Action Construction Equipment Limited (ACE) has been awarded with a contract to set up a state-of-the-art assembly plant for manufacturing of Tractors, Backhoe Loaders and Fabrication of Agricultural implements for the Government of The Republic of Ghana against a consideration of USD 24. 98 Million.

The said contract is secured through a credit agreement between the Government of The Republic of Ghana and Export- Import Bank of India. The project will be owned and operated by the Government of The Republic of Ghana, as per the filing.

Further, the project involves Designing, Engineering, Commissioning of assembly lines and Supply of plant and machinery for the manufacturing plant in addition to transferring the technical know-how, establishing best-in-class manufacturing processes and quality control systems along with the training of engineers and technicians from The Republic of Ghana for future operations.

The manufacturing unit will be designed for an installed capacity of 4,500 Tractors, 600 Backhoe Loaders, 6,000 Agricultural implements and 3,000 Tipping trailers annually.

The contract also includes the supply of an initial pilot lot of Tractors, Backhoe loaders and agricultural implements in CKD form for the assembly lines for manufacturing. Subsequently, after the commissioning of the plant, the prices for the CKD kits shall be applicable as per the prevailing market rates at the time of the supply.

On completion, the project will play a vital role in opening up of the export markets in the African region for our products and augmenting the company's Global efforts.

At around 3:15 PM, Action Construction Equipment was trading at Rs200.80 per share down by Rs9.65 or 4.59% from its previous closing of Rs210.45 per share on the BSE.