Amtek Auto forms Joint Venture with VCST Industrial Products of Belgium

Amtek Auto Ltd has announced that the Company has inked a strategically important 50:50 Joint venture with VCST Industrial Products bvba of Belgium with headquarters in Sint Truiden, Belgium to set up a state of the art manufacturing facility for powertrain components in India. The JV will primarily focus on the manufacture of gears and shafts for automotive on- and off-road applications.

VCST is a leading designer and supplier of engine, driveline and technology components and one of the most reputed manufacturers of engine and transmission gears and transmission shafts for automotive applications. Its mission is to build upon product expertise, process technology and market leadership to deliver value-added components and assemblies to automotive customers around the world. Besides the gears and shafts, VCST is also a market leader in fully finished brake components such as ABS / ESC - valve bodies, intermediate gear assemblies, etc.

The manufacturing facility under the Joint venture will be set-up near the Company's cluster of manufacturing plants in Sanaswadi near Pune with initial installed capacity of about 1.5 Million components for exports only. The facility is scheduled to start shipping out finished parts by February 2008.

The combination of the Company as one of the largest manufacturers of gear blanks and forgings with VCST as one of the world leaders in gear and transmission shafts manufacturing will bring an integrated value chain and advanced machining technology necessary to compete in today's automotive market.

This Joint Venture will be another milestone for both partners and a step forward in the direction of expanding their customer and product portfolios as well as attaining world class technological edge in automotive component manufacturing.

Source : Equity Bulls

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