Setco Automotive Ltd and Lingotes Especiales S.A. of Spain on Friday announced the formation of a joint venture which will invest Setco, Lingotes JV to invest €30 mn over the next three years on developing and manufacturing fully-machined casting products for the automotive and other industries.

The JV, called Lava Cast Pvt Ltd, will have equity participation by both companies. As part of this agreement, Lingotes Especiales will come on board of Lava Cast as the technology partner. The proposed foundry will start commercial production in a year.

“It is the next step in our vision which will make Setco Automotive the preferred OEM supplier/ partner globally”, said Harish Sheth, Chairman and Managing Director.

This global alliance between Setco and Lingotes was carried out on Thursday at a function held at the foundry site at Kalol in Gandhinagar district of Gujarat.

Vincent Garrido, Chairman, Lingotes Especiales, said the JV would help create a reliable supply base of castings for the international market.

Incorporated in May 1982, and listed on the BSE, Setco is the largest manufacturer of premium quality Lipe brand clutches for the commercial vehicles in India. The company employs more than 950 people globally. It is a Tier I supplier of clutches to all the prominent Indian commercial vehicle manufacturers such as Tata Motors, Bharat Benz, Ashok Leyland, Volvo – Eicher commercial vehicles and Asia Motor Works, amongst others.

Setco has four manufacturing facilities, two in India, and one each in UK and USA, with its corporate base in Mumbai. While its major manufacturing is in Kalol, it also has a facility in Sitarganj, Uttarakhand.

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