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MACHINIST - Amtek Auto Ltd and Sumitomo Metal Industries form JV for forged crank shafts

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Home arrow News arrow Alliances and Joint Ventures arrow Amtek Auto Ltd and Sumitomo Metal Industries form JV for forged crank shafts

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Amtek Auto Ltd and Sumitomo Metal Industries form JV for forged crank shafts
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Written by Vijay   
Tuesday, 19 May 2009

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Mumbai: Amtek Auto Limited (Amtek) & Sumitomo Metal Industries Ltd (Sumitomo Metals) of Japan have signed a Joint Venture Agreement for Production and sale of forged crank shafts for automotive applications in India. This Joint Venture is to be formed with investment of 50% by Amtek, 40% by Sumitomo Metals, and 10% by Sumitommo Corporation. Sumitomo Corporation is the global partner of Crankshaft business of Sumitomo Metals.

This is in line with Amtek’s strategy of augmenting its product portfolio.

Amtek will contribute to this Joint Venture, its existing local market and manufacturing know how and experience. Sumitomo Metals on the other hand will bring in its world class crankshaft forging technology.

This Joint Venture will be another milestone for the Amtek Group and step forward in the direction of consolidating its customer and product portfolio as well as attaining world class technological edge in automotive manufacturing.

This also makes Amtek a full serviced supplier of crankshafts for automotive applications as Amtek has already created market leader position for itself in the field of fully machined crankshafts in India. 

This Joint Venture also provides to Sumitomo Metals entry into the high growth crankshaft market of India. This is based on Sumitomo Metals’ corporate strategy to “add strength to strong areas.” With this entry to India, Sumitomo Metals will have a global “tetra polar” production system (Japan, U.S, China and India)

The automobile industry today faces unprecedented difficulties, but the Indian automobile market has been growing rapidly in recent years and local demand for forged crankshafts is expected to surge significantly in the medium to long term.

 
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