- 21 Jun 2022
- ICICIdirect Research
GHANA AWARDS ACE STRATEGIC CONTRACT
ACE - 1340 Change: -22.15 (-1.63 %)News: Action Construction Equipment (ACE) has been awarded 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 Ghana government against a consideration of Rs. 195.8 crore. The said contract is secured through a credit agreement between Ghana government and Export- Import Bank of India. The project will be owned and operated by Ghana government
Views: ACE having legacy in this market space is all set to gain from this deal. 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. This will also open up the export markets in the African region for the company
Impact: Positive