Japan-based steelmaker Kobe Steel Ltd has announced that it has formed a joint venture (JV) with Indian technology, engineering, construction and manufacturing company Larsen & Toubro Limited to manufacture and sell rubber processing machinery.
According to a Kobe Steel release, called L&T Kobelco Machinery Private Limited, the JV will make rubber mixers and twin screw rollerhead extruders used in manufacturing tires. Plans call for construction of the plant to begin in February 2011 and production to begin in October 2011. Approximately INR 500 million ($10.9 million) will be invested in the facility.
Established in November 2010, the company is capitalized at INR 500 million. L&T Kobelco is 51 percent owned by Larsen & Toubro and 49 percent by Kobe Steel.
Tire and rubber machinery is used to manufacture tires for automobiles and construction equipment. Demand has been rising in recent years owing to rising production of automobiles mainly in emerging countries.
Kobe Steel currently manufactures tire and rubber machinery in Japan, the US and China. Kobe Steel said that it is regarded as the top maker of rubber mixers, with an estimated world share of approximately 50 percent, according to the European Rubber Journal.