Mariborska livarna Maribor (MLM) foundry and the civil engineering company Riko unveiled on Wednesday a long-term strategic partnership under which Riko will acquire a 10% stake in the foundry.
Riko will acquire the stake from one of the company's existing shareholders, MLM chief executive Branko Zerdoner told the press in Ljubljana. Riko general manager Janez Skrabec would not disclose the price.
The foundry is planning to increase revenues to over EUR 100m this year and gain a foothold on the Russian market through Riko's aid.
In 2006 the company, which employs 1,100 workers and exports 75% of output to foreign markets, posted revenues of EUR 92m.
The two companies have been cooperating before, with an MLM plant, constructed by Riko's SAS subsidiary from Croatia, already producing a part for the diesel engine of the Golf Mark V.
Apart from the production of cast metal products, the two companies will also cooperate in the marketing of the foundry's line of Armal water taps and Aklimat aluminium radiators.
MLM and Riko are planning to construct a factory for the production of radiators in Russia, while the foundry also hopes to increase the sales of its water taps in the world's largest country.
Riko already has a foothold in Russia. It is currently constructing a EUR 130m commercial and hotel complex within the Luzhniki Olympic Complex in Moscow and the Peter I Hotel in Moscow.
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