The Hindu Business Line : Ashok Leyland forms joint venture with Finnish co

Joining hands: Mr R. Seshasayee, Managing Director, Ashok Leyland, and Mr Panu Routila, CEO, Alteams Group, at a press conference in Chennai on Tuesday. —

Our Bureau

Chennai, July 3 Ashok Leyland has entered into a joint venture with the Alteams Group of Finland to manufacture high pressure die casting (HPDC) aluminium products for automotive and telecommunications applications.

The equal joint venture would invest Rs 175 crore in the first phase. The venture would initially operate from leased premises and “start operating pretty much immediately,” Mr Panu Routila, Chief Executive Officer, Alteams Group, said at a press conference here on Tuesday.

Mr R. Seshasayee, Managing Director, Ashok Leyland, said the joint venture was looking for some 30 acres near Chennai and had identified a few locations. The venture would achieve a turnover of Rs 280 crore in 2008-09.

Second phase

Due to the demand for HPDC products, work on the second phase of the project would also begin shortly. In the second phase, it would invest another Rs 160 crore.

The Alteams Group is owned by the $1.4-billion Kuusakoski Group, an international metals recycling company. Alteams is one of the larger light metal foundries in Europe and would bring its technical and manufacturing expertise to the joint venture.

Asked what Ashok Leyland brought to the table, Mr Seshasayee said, “credibility and knowledge of HPDC product.”

Mr Seshasayee said the joint venture agreement did not preclude Ashok Leyland’s associate company, Ennore Foundries Ltd, from entering the high pressure die casting business. Ennore Foundries today produces grey iron casting products, for automotive applications.

He promised that he would come back with more announcements of similar joint ventures.

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