Shlomo Group subsidiary Afcon Industries Ltd. (TASE: AFIN) and its German partner RMG Group have won two contracts worth an aggregate NIS 26 million from Israel Natural Gas Lines Company Ltd. Afcon builds and operates natural gas facilities and electro-mechanical systems. Afcon and RMG operate through a joint venture ARG Afcon RMG Gas Technologies Ltd., which they own in equal shares. The projects will be built over the next 18 months.
ARG will build pipeline gas metering stations (PRMS) for enterprises hooked up to the national gas pipeline. The stations serve three purposes: they reduce the gas pressure in the pipeline, measure the quantity of natural gas delivered to the customer, and monitor and measure the quality of the gas delivered. Natural gas is transported through the pipeline at high pressure, which must be reduced before a customer can use it.
Afcon Industries CEO Avi Winter said that it is very worthwhile for factories to link up with the national natural gas pipeline, which is now under construction, because natural gas is cheaper than crude oil or diesel currently used by most factories.
Winter added that RMG Group was a major industrial and engineering firm, which specialized in the manufacture of PRMS. "We've benefited from their know-how and experience," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008