Larsen & Toubro and Kobe Steel of Japan have entered into a joint venture to make internal mixers and twin screw roller-head extruders for the tyre and rubber industry both here and abroad.
The JV, in which L&T will hold 51 per cent, will invest around Rs 60 crore for a new facility. The options being considered are Tamil Nadu, Andhra Pradesh and Karnataka. The revenue for 2016 is projected at Rs 200 crore and initial investment will be Rs 30 crore. The project is expected to become operational in two years.
The joint venture will leverage Kobe’s technology and the L&T’s market reach in the domestic and overseas markets, a company release said.
Kobe Steel has been developing and manufacturing mixing room equipment for the tyre and rubber industry for decades. It is a global market leader for internal mixers. L&T had also been in the rubber processing machinery business for years, offering world renowned tyre curing presses and tyre building machines.
The joint venture agreement was signed by Mr. J. P. Nayak, Whole-time Director and President (Machinery & Industrial Products), L&T, and Mr. Kazuo Shigekawa, Executive Vice-President & Representative Director, Kobe Steel.
The partnership will further strengthen the capabilities of L&T’s rubber processing machinery business by expanding its portfolio offerings to the global tyre industry. It will now offer internal mixers and twin screw rollerhead extruders in addition to its existing range of tyre curing presses and tyre building machines.