Accordingly, the joint venture in question is to be set up with an approximate total investment of Rupees 540 million ($11.2 million), with Sumitomo Metals holding a 40 percent share, Sumitomo Corporation a 10 percent share, and Amtek a 50 percent share. Sumitomo Metals will send a representative to assume the position of CEO. The joint venture company will acquire Amtek's Dharuhera plant near New Delhi. The plant is newly equipped with a 4,000-mt pressing machine.
The joint venture company, with an annual production capacity of 800,000 crankshafts, is scheduled to start operations in July 2009. It will employ 60 workers at the start-up.
With this entry to India, Sumitomo Metals will have a global "tetrapolar" production system (Japan, U.S., China, and India) and will cement its global share in forged crankshafts to over 10 percent.
Sumitomo Metals' current production bases for forged crankshafts are as follows:
Manufactures forged crankshafts for automobiles, trucks, and construction machinery in the Osaka Steel Works of the Railway, Automotive & Machinery Parts Company (capacity: approx. 4.0 million crankshafts per year) |
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U.S.: |
Manufactures forged crankshafts mainly for automobiles and small trucks in International Crankshaft Inc., Kentucky (capacity: approx. 2.7 million crankshafts per year) |
Manufactures mainly for automobiles and small trucks, at Huizhou Sumikin Forging Co., Ltd. Guangdong (capacity: approx. 1.8 million crankshafts per year) |