EMA India closes Honing division

EMA India Ltd has announced that the Company was having two manufacturing division - (1) Induction Heating Division - known as EMA INDIA situated as Udyog Nagar, Kanpur & (2) Honing Division - known as GEHRING INDIA situated as Mandhana, Kanpur.

Honing division i.e., GEHRING INDIA was started for manufacturing of Precision Honing Machine in technical cum financial collaboration with M/s Maschinenfabrik Gehring GmbH (Gehring Germany) in 1987. Now Company's Joint Venture as well as co-operation with Gehring Germany is now over and activities related to manufacturing sales and service as well as supply of spare parts of Honing Machine have totally ceased from the Company. An agreement dated July 20, 2006 has been signed, filed and recorded by Hon'ble Company Law Board, Principal Bench, New Delhi. Accordingly as per settlement, the Company which is parent Company of GEHRING INDIA has to drop the Gehring name and Technology in total.

Under the circumstance, since there are no manufacturing , business activities left to be conducted at the Company’s Honing Division, therefore it has decided by the Management to permanently close the Honing Division w.e.f. November 16, 2006 and suitably transfer / absorb the entire workforce of Honing Division in the Company's Induction Heating Division i.e., EMA INDIA as permissible under the Standing Orders. Majority of the workforce, accepting this transfer, has already joined their duties in EMA INDIA at Udyog Nagar, Kanpur.

Source : Equity Bulls

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