Amtek forms a JV with Sumitomo Metals

Japan-based Sumitomo Metal Industries Ltd enters India through a joint venture with Amtek Auto Ltd for production and sale of forged crankshafts for automotive applications in India.

The new company, which is tentatively named SMI Amtek Crankshaft Pvt Ltd, will see 50 percent investment from Amtek, 40 percent from Sumitomo Metals and 10 percent from Sumitomo Corporation, a global partner of crankshaft business of Sumitomo Metals.

The CEO position will be taken over by a representative from Sumitomo Metals.

The operations are expected to commence by July 2009 with a working capital of Rs 540 million.

The new company will acquire Amtek’s Dharuhera plant near New Delhi, said a news release by Sumitomo Metals. The plant is newly equipped with a 4,000-ton pressing machine.

With this alliance, Sumitomo Metals will have a global ‘tetra polar’ production system (Japan, US, China, and India), and Amtek will attain world class technological edge in local markets.