By IANS
Chennai : Trucks and bus maker Ashok Leyland, a part of the London-based Hinduja group, Tuesday said it has forged a 50:50 venture with Finland's Alteams Group to make high pressure die casting aluminium products in Tamil Nadu.
"The joint venture reflects the expansion of Ashok Leyland Group's presence in the auto components sector to take advantage of rapidly growing opportunities both in India and abroad," said the company's managing director R. Seshasayee.
"We are already present in the foundry business through Ennore Foundries. This joint venture broadens our portfolio to meet the demand of castings from the automotive and telecommunications sectors," he said in a statement.
The 50:50 joint venture will give jobs to 1,000 people and will start its activities this year with a first phase of to investment worth Rs.1.75 billion ($43 million) to be completed by 2008.
The venture will also partly meet Leyland's captive requirements for components for engines and gearboxes. The target markets will also extend beyond India.
"This joint venture notably strengthens Alteams' opportunities to serve clients in Asia. We are very happy to be able to start co-operation specifically with Ashok Leyland," said Panu Routila, chief executive of the Alteams Group.
The Alteams Group has production units in Finland, Sweden, Russia, Estonia and China.
Alteams, owned by the Kuusakoski group, has its core business in the manufacture of cast light metal components including related services like design of castings and tooling as well as further processing into assembly-ready components.