Amiad, CIMA Establish Amiad Andina in South America
Amiad has established Amiad Andina, a joint venture with its Chilean distributor, CIMA, a distribution company active in the irrigation and construction industries, to enhance the sale and marketing of Amiad’s products and solutions in the industrial and municipal markets in Chile, Peru and Argentina.
CIMA has been Amiad’s distributor for the municipal and industrial markets in Chile since the end of 2007.
Under the agreement, Amiad holds 50 percent of the shares of Amiad Andina through the company’s subsidiary Amiad Chile, and CIMA holds the remaining 50 percent of shares. It is expected that each party will make an initial capital investment of US$100,000 and an additional US$100,000 from shareholder loans.
Amiad has been increasing its presence in South America and looking to expand further in the region. In Chile, during the first half of 2009 the company built on its successes to date within the mining industry and secured two projects with a large engineering group for cooling water. The ongoing growth in Chile has been achieved in partnership with CIMA, and with growth in South America set to continue as economic development in the region progresses, the company expects Amiad Andina to enhance its sales in the target countries.
Commenting on the news, Arik Dayan, chief executive officer of Amiad, said:
“As we have stated, our strategy is to become a leading international water filtration company that can provide filtration solutions for the irrigation sector, industry and municipalities worldwide. This venture is an important step in that direction and one that will contribute to the company’s finances immediately.”