By IANS
Kolkata : Usha Martin Limited, a leading producer of speciality steel and wire rope, inaugurated its oil tempered wires manufacturing unit at Ranchi in joint venture with Austria-based Joh Pengg AG Thursday.
Joh Pengg AG will hold 60 percent equity in the joint venture while Usha Martin will hold 40 percent.
“We are really happy to partner with Usha Martin Group in India. We are very confident that the combined resources of both the companies will make this venture highly successful,” Joh Pengg AG chairman Gottfried Pengg said.
Austria-based Joh Pengg AG is a global leader in producing oil tempered wire for the automotive industry.
The cost of first phase of the project is Rs.460 million ($11 million) which is being funded by share capital of Rs.180 million; balance Rs.280 million being funded from promoters’ loan of Rs.110 million and long term loans of Rs.170million.
“Our group is always committed to introducing high quality value added products with world class technologies and our joint venture with Joh Pengg of Austria to manufacture oil tempered wires is yet another initiative in that direction,” Usha Martin chairman B.K. Jhawar said.
The joint venture agreement between the two companies was signed in March 2006.