Bangalore, April 15
DEUTZ AG, a commercial vehicle and tractor engine manufacturing company, hopes to increase its sourcing of a critical component valve seats inserters from India, which it considers one of the few low-cost source with precision engineering capability.
The company already procures about Rs 3 crore worth of valve seats from the Karnataka-based Precision Alloy Components Private Ltd (PAC).
Deutz, which manufactures engines for HCV companies including Volvo, also plans to purchase components such as cylinder head for which it has identified many suppliers from Karnataka. PAC, however, is the single source for Deutz's requirement for seat valves.
Addressing a press conference here on Thursday, Mr Alexander Graf Von Matsuchika- Greiffenclau, Senior Vice-President (Operations), said Deutz would be stepping up its procurement of engine components by 60 per cent of its total requirement worth euro 700 million by 2008 from low-cost countries. It is planning to increase its capacity to 2.5 lakh engines in three years from the current 1.7-lakh units.
Mr Alexander Graf said Deutz was planning to enter into long-term contract with PAC for valve seats.
Mr V.K. Divekar, Director, PAC, said his company plans to expand valve seats production capacity to 15 million units per annum from 10.8 million units.