The majority owners of H&R, the owner of the Hidria Group, concluded a strategic partnership agreement with Gonvarri Industries; the partnership will address the challenges and opportunities of the rapidly growing electrification market in mobility and other industrial applications.

The aim of the new strategic partnership of the two extraordinarily propulsive and compatible companies, Hidria and Gonvarri, is to create a leading provider in the market of solutions and products for sustainable electrical mobility and industrial applications. The focus will be in particular on the provision of a comprehensive global offer of key components in the sector of electric motor drives.

The Svetlik family sold its 42% share of the company H&R to the Spanish global corporation Gonvarri.

Hidria and Gonvarri are connected and linked in many areas of collaboration as well as synergies in sales, supply, and other areas. The main opportunity is the rapidly developing and growing automotive and industrial sector, in particular the global market of stators and rotors for electric motors used in electric drives of hybrid and electric vehicles of the future. This segment appeared only recently but will soon exceed an annual value of EUR 5 billion.

Hidria remains firmly rooted and connected in Slovenia.

Our corporation will remain strongly present in Slovenia, both with increasing existing investments, such as the ongoing EUR 40 million investment in the development and production of stators and rotors for e-drives in Spodnja Idrija, as well as with planned new investments. The new partnership with Gonvarri will help with the growth of global sales and production and increase our European and global reach and presence.

The new strategic partnership will also bring us on the path of a new phase of global growth.

The agreement will become valid under the usual approval conditions by European and Slovenian competent authorities; these are expected to be fulfilled by the end of 2022. More information will be available on the agreement and the plans of the partnership after these approvals, when representatives of Gonvarri will join Hidria's current management in a minority stake. More about this Spanish corporation can be found under www.gonvarri.com.