Grintek will use Eltek’s power conversion modules in the power systems they deliver to telecom operators and equipment manufacturers in Africa, mainly south of Sahara. The telecom power system market in this region is estimated to have an annual value of USD 50 million and is expected to grow significantly over the coming years as mobile telephony and broadband are being deployed. Grintek has a market share of approximately 20 %, and is a top three supplier in the region. Eltek’s products will gradually replace current products used by Grintek.
“Through this agreement Eltek enters a new, emerging market with great opportunities and has joined forces with a solid, innovative and successful African partner. The agreement expands our global coverage further, and we are now well positioned to exploit market opportunities on all continents”, says Morten F. Angelil, CEO of Eltek.
Makhup Nyama, CEO of Grintek explains: “Grintek has partnered with Eltek after a thorough evaluation of the best products on the market and their suitability for the African environment. Eltek’s significant global market share was also an important parameter since it brings the economy of scale effects to reduce the costs per product sold and improve delivery scheduling derived from uninterrupted large production volumes”.