Sumitomo Metals Expands to India for Forged Crankshaft Business

Today Sumitomo Metal Industries, Ltd. (Sumitomo Metals) agreed to establish a joint venture with Amtek Auto Limited (Amtek), a manufacturer of automobile parts in India, in order to enter into the Indian market where high growth is anticipated. This is in line with Sumitomo Metals strategy to expand forged crankshaft business.

1. Background and Objectives of Entering the Indian Market
The automobile industry today faces unprecedented difficulties, but the Indian automobile market has been growing rapidly in recent years and local demand for forged crankshafts is expected to surge significantly in the medium to long-term.
Sumitomo Metals has decided to enter into the crankshaft market in India, in order to capture demand in that growth market. This is based on corporate strategy to"add strength to strong areas."
With this entry to India, Sumitomo Metals will have a global "tetrapolar" production system (Japan, U.S., China, and India) and cement our global share in forged crankshafts to over 10%. We are strengthening our forged crankshaft business and responding to automakers' global strategies.

2. Means of Entering the Market
A joint venture is to be formed with investment of 40% by Sumitomo Metals, 10% by Sumitomo Corporation, and 50% by Amtek. Sumitomo Metals will send a representative to assume a position of CEO. The JV company will acquire Amtek's Dharuhera plant near New Delhi. The plant is newly equipped with a 4,000-ton pressing machine.

3.Business Activities
Production and sale of small-size forged crankshafts and other forged products

 

4. Outline of the Joint Venture

Reference
1. Sumitomo Metals' Production Bases of Forged Crankshafts

2. Profile of Amtek Company Name: Amtek Auto Limited

 

from left
Mr.Mitsunori Okada : Senior Managing Executive Officer, Sumitomo Metal Industries, Ltd.
Mr.Arvind Dham : Chairman, Amtek Auto Limited