Amtek Auto forms JV with Magna Powertrain of Canada

Amtek Auto Ltd has announced that the Company has inked a strategically important 50:50 joint venture (JV) with a large Canadian blue chip Magna Powertrain for establishing a manufacturing facility outside Delhi, India for 2-Piece Flex Plate Assemblies for Automotive applications.

Manufacturing operations of the joint venture are expected to commence late in 2007. The joint venture will initially export FlexPlate Assemblies entirely to European markets, with production to follow for the Indian market. FlexPlate Assemblies are used in automobiles with automatic transmission systems.

The 50:50 joint venture between Magna Powertrain and the Company expands on the Company's existing relationship as a supplier of ring gears to Magna Powertrain’s North American operations. The joint venture represents a step forward in the expansion of the Company's customer base and product portfolio, as well as its technological capabilities, and is expected to enhance the competitive positions of both the Company and Magna Powertrain.

Magna Powertrain, an operating unit of Magna International Inc., is engaged in the business of the design, development, manufacture, assembly and supply of powertrain and drivetrain products (and related devices) such as transaxies, gear boxes, PTO units, transfer cases, four wheel drive and all wheel drive units, and a wide variety of engine and transmission components, modules and systems for the global automotive industry.

Source : Equity Bulls

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