Monday, 02 August 2021 05:48 GMT

Aquarius Engines signs MOU on $1b factory in UAE


(MENAFN - Trend News Agency ) Aquarius Engines, founded by its chairman Gal Fridman, CEO Ariel Gorfung, and Shaul Yaakoby, has announced that is has signed a memorandum of understanding (MOU) with energy company Kampac International PLC (KIP) on setting up a joint factory in the United Arab Emirates to manufacture products for the automotive industry based on the technology developed by Aquarius Engines. The factory will be constructed and run by a company formed by the two sides, Aquarius Automotive Middle East, Trend reports with reference to Globes .

Under the MOU, KIP will raise $1-1.2 billion for setting up the project, to be invested in the company to be formed, against an allocation of shares to be agreed between the parties. KIP has also been given an option to buy 10% of the shares in Aquarius Engines itself, at a company valuation of $5 billion, within 14 months of the MOU being signed.

KIP is an international company incorporated in the UK with an energy arm located in Dubai. The company is active in oil and gas exploration and in mining. It operates in Dubai, the UK, Ghana, Nigeria, and Congo.

Last month, Aquarius announced what it described as a breakthrough in the development of its technology. The linear engine it has developed successfully underwent a test running on hydrogen fuel only, with no assistance from fossil fuels, with near zero gas emissions.

Aquarius Engines has various sites around the world. In Israel, it is based in the Rosh Ha'ayin industrial zone. The company employs 90 people in Israel, Poland, Germany, and Italy. Among its shareholders are Marius Nacht, Leon Recanati, Shlomi Eliahu, Japanese corporation Musashi, and Japanese vehicle parts company TPR.

The MOU with KIP is an important milestone in Aquarius's preparations for substantial activity in the global vehicle industry. The collaboration represents a further vote of confidence in our groundbreaking technology, and we believe that KIP's capabilities and business ties will help us to advance and consolidate our capabilities in the automotive world."

Aquarius Engines' stock price is up by more than 20% on the Tel Aviv Stock Exchange this morning.

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