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LISMA goes into business with Hungarian company EHT Ltd

On May,31 in Budapest two Memorandums of Understanding were signed between LISMA SUE of the Republic of Mordovia and Hungarian financial group EHT Ltd. The document was signed by Igor Konstantinov, General Director of the lightning enterprise, and Jano Arwa, Managing Director of EHT. The first Memorandum provides the interaction of parties in the framework of foundation of the joint venture "Lisma East Europe" on the territory of Hungary. The key objective of the JV is selling of LISMA products in the European market. First of all it concerns of LED filament, sodium and metal halide lamps; also there is a possibility of organization of light sources production for European consumers under different trademarks on the territory of LISMA plant. Under this project the Hungarian Party takes over a mission of financing, product certification and legal services. "Lisma East Europe" gains the exclusive right in selling of LISMA products on the territory of Hungary and Eastern and Central Europe. The second Memorandum provides the foundation of identical joint venture, but which is intended to function on the territory of Russia and the Customs Union countries (EAEC). The new company will be named as "Lisma- Promsvet"; its primary objective is implementation of projects devoted to public, industrial and greenhouse lighting as well as projects of energy efficiency raising in various fields with the obligatory use of LISMA lamps.

We believe, that cooperation with EHT Ltd is very promising for us, - maked comment Sergey Ermakov, head of LISMA Investment Development Department. - Our Hungarian partner is successful in doing business in the international market, possess of competences in project leadership and fund raising. In its turn, LISMA has necessary engineering and manufacturing base and product range of proper quality goods for its introduction into the foreign market. Dealing with EHT Ltd we plan to develop two strategically important and new trends for us: expansion of large European distributive networks and development of so-called “project” or “energy service” sales, which are now in high demand in the market. As well it is always burning issue of export development, of course. We believe, that the export is one of the growth drivers of LISMA; that's exactly why the company purposefully implements the policy of consolidation in the international market and increases in supplies abroad.

Arrangements under Memorandums serve as preliminary and may be subsequently corrected. After signing the documents the parties proceed with preparation of economic and financial plan. Presumably, the joint ventures will start operating in September of current year.

It should be noted, that signing of the Memorandum between LISMA and EHT Ltd has become one of the points of the large-scale cooperation programme of the Republic of Mordovia and Hungary. The earliest agreements reached in course of negotiations are being formalized in Budapest with the participation of the government delegation from the Republic of Mordovia under the leadership of Vladimir Volkov, the Head of Mordovia.

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