Sumitomo Metals Makes Equity Investment in SSWL, India’s Largest Manufacturer of Automotive Steel Wheels
2010.11.26
- Sumitomo Metal Industries, Ltd.
- Ring Techs Co., Ltd.
Sumitomo Metal Industries, Ltd. (Sumitomo Metals) has decided to invest in Steel Strips Wheels Limited (SSWL), the largest manufacturer of automotive steel wheels in India. The invested capital will be used for SSWL’s capacity expansion.
Ring Techs Co., Ltd. (Ring Techs), a fully-owned subsidiary of Sumitomo Metals, has provided technical assistance to SSWL since 1997.
With this equity investment, the Sumitomo Metals Group aims to strengthen its relationship with SSWL and raise its presence in India’s growing automotive market.
1. Outline of the investment
(1) |
Method of the investment: | Third-party allocation of new shares | ||
(2) |
Date of the investment: | December 10, 2010 | ||
(3) |
Amount of the investment: | 442 million rupees (approximately 810 million yen) | ||
(4) |
Invested equity stake: | 5.88% |
2. Profile of SSWL
(1) |
Business activities: | Manufacture and sale of steel wheels for passenger cars and agricultural and industrial vehicles | |||
(2) |
President: | Dheeraj Garg | |||
(3) |
Capital: | 131 million rupees (approximately 240 million yen) | |||
| Shareholders’ equity: | 1,891 million rupees (approximately 3,460 million yen) | ||||
(4) |
Net Sales: | 4,217 million rupees (approximately 7,720 million yen) | |||
(5) |
Production capacity: | 12.5 million wheels p.a. (scheduled to expand production capacity to 19.5 million wheels p.a. by 2013) | |||
(6) |
Number of employees: | 2,060 | |||
(7) |
Location: | Head office – |
Chandigarh (India) | ||
| Plants – | Dappar, Chennai, Jamshedpur (India) | ||||
| Offices – | New Delhi, Mumbai, Pune (India) | ||||
(8) |
Commencement of operation: | 1991 | |||
＜Reference＞
1. Ring Techs’ technical assistance to SSWL
| 1997 | ||
| Ring Techs began to provide technical assistance to SSWL, at the request of an Japanese automotive manufacturer in India. Since then, Ring Techs has provided assistance relating to plant operation, maintenance, and product quality guarantees. |
||
| 2009 | ||
| The range of assistance was expanded to development assistance, in order to respond to a request by Japanese automotive manufacturers in India. | ||
2. Profile of Sumitomo Metals
(1) |
Business activities: | Steel business (Pipes and tubes, sheets and plates, construction materials, railway parts, castings and forgings, titanium products, etc.) and others | ||||
(2) |
President: | Hiroshi Tomono | ||||
(3) |
Capital: | 262,072 million yen | ||||
(4) |
Net Sales: (consolidate basis) |
1,285,845 million yen | ||||
(5) |
Number of employees: (consolidate basis) |
23,674 | ||||
(6) |
Location: | Head office – |
・ ・ |
Chuo-ku, Osaka, Japan Chuo-ku, Tokyo, Japan |
||
| Plants – | ・ |
Kashima Steel Works (Kashima, Ibaraki Prefecture, Japan) | ||||
・ |
Wakayama Steel Works (Wakayama, Wakayama Prefecture, Japan) | |||||
・ |
Steel Tube Works (Amagasaki, Hyogo Prefecture, Japan) | |||||
・ |
Osaka Steel Works (Osaka, Osaka Prefecture, Japan) | |||||
・ |
Sumitomo Metals (Kokura), Ltd. (Kitakyusyu, Fukuoka Prefecture, Japan) | |||||
・ |
Sumitomo Metals (Naoetsu), Ltd. (Joetsu, Niigata Prefecture, Japan) | |||||
3. Profile of Ring Techs
(1) |
Business activities: | Manufacture and sale of wheels for passenger cars and agricultural and industrial vehicles |
||||
(2) |
President: | Shigeyuki Hamada | ||||
(3) |
Capital: | 500 million yen | ||||
(4) |
Net Sales: |
10,429 million yen | ||||
(5) |
Production capacity: | 13 million wheels p.a. | ||||
(6) |
Number of employees: |
256 | ||||
(7) |
Location: | Head office – |
・ |
Kurashiki, Okayama Prefecture, Japan | ||
| Plants － | ・ |
Okayama Plant (Kurashiki, Okayama Prefecture, Japan) | ||||
・ |
Ota Plant (Ota, Gunma Prefecture, Japan) | |||||
・ |
Ring Techs Guangzhou Co., Ltd. (Guangdong Province, China) | |||||
4. Location of SSWL’s Offices and Plants
 |
Automotive steel wheels
 |
