Amount paid for stake `cannot be disclosed'

Our Bureau

Mumbai, March 20

Bharat Forge Ltd today informed that its new joint venture with China's FAW Group has been formally inaugurated.

Bharat Forge did not disclose the amount paid for its 52 per cent equity stake in the joint venture.

"We cannot disclose the amount due to confidentiality agreement," the Bharat Forge spokesperson said. The balance 48 per cent equity in the joint venture is with FAW. The facility was an existing one within FAW Group. It was spun off into a joint venture with FAW contributing the facility and Bharat Forge bringing in equity.

The joint venture is called FAW Bharat Forge (Changchun) Co Ltd.

"The newly established joint venture company will be engaged in manufacturing highly engineered critical and safety components for the automotive industry. The joint venture will focus on offering its range of products and services to FAW Group Corporation and other automotive groups operating within China.

"The joint venture will progressively position itself as the cost competitive producer of highly engineered forgings for the international market and also focus on non-automotive business in fields such as railways, mining and construction equipment, steel mills, power plants, marine applications and the oil & gas business," an official statement said.

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(This article was published in the Business Line print edition dated March 21, 2006)
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