Financial Daily from THE HINDU group of publications
Monday, Jul 01, 2002
Financial Daily from THE HINDU group of publications Monday, Jul 01, 2002 |
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Corporate
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Alliances & Joint Ventures SILK, Chinese co join hands to make turbines Our Bureau
THIRUVANANTHAPURAM, June 30 THE State-owned Steel Industrials Kerala Ltd (SILK) has signed a memorandum of understanding (MoU) with Hunan Shendiyan International Development Shareholding Ltd (HCIDC) of China for the manufacturing of hydroelectric turbines and other related machinery. The joint venture project will be implemented in the steel fabrication unit of SILK in Cherthala, Alappuzha district. A new company called Sino-India Manufacturing Company has already been formed to this effect. SILK will contribute 30 per cent of the total equity capital of $3 million of the new company, which will be in the form its existing infrastructural facilities, including land. The Chinese company will pitch in with 30 per cent. According to a statement from the company, the joint venture is the result of the recommendation of the Union Ministry of Non-conventional Energy Sources (MNES) that SILK was the most suitable agency to implement such projects. This could probably be the first Indo-Chinese industrial investment in the country, it added. The statement also said that China's technical expertise in the field, combined with the "excellent manufacturing" facilities of SILK, would make the company a successful venture. The Chinese partner would offer all additional technical support to the company to adopt modern manufacturing processes. The new project is designed keeping in view the vast market for products in the Afro-Asian countries under the United Nations International Development Organisation (UNIDO), besides the domestic market. SILK is on the lookout for similar joint ventures with other agencies as well, which would not burden the State Government with much financial liability. It is set to enter into a tie-up with a Gulf-based company soon, which will expand its marketing network to the Gulf region and countries such as Iran, Iraq and Syria.
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