Mishra Dhatu Nigam Limited, super-alloys maker and a Government enterprise, as well as Tubacex, a Spanish multinational, have signed up to work together on development and production of advanced materials for the energy sector.
The agreement, inked here on Thursday, allows the joint development of advanced materials, in furthering technological alliances and the promotion of local manufacturing capacities, both for domestic consumption and for export markets.
Jesus Esmoris, Chief Executive Officer (CEO) of Tubacex Group, said the strategic tie up has the potential to boost Tubacex in key multi-annual projects as well as in a target market with growth potential.
Explaining the importance of the understanding, Esmoris told Business Line, “India has prospects of becoming a world leader in the development of nuclear energy and out commitment is based on our ability to develop advanced materials that respond to the challenges facing the industry in terms of safety, quality and energy efficiency.”
Tubacex, which is likely to close this year with 20 manufacturing plants spread across in various markets, has made its entry to India through the acquisition of Prakash Steelage, a Gujarat based company in 2015. “We are planning to further expand the facility to cater to not only the domestic market but for exports. Exports currently account for about 80 per cent of the production,” Esmoris said.
Dinesh Kumar Likhi, Chairman and Managing Director (CMD) of Mishra Dhatu Nigam Limited, said, “As a part of India’s make in India initiative, we are not only seeking to meet the country strategic domestic requirements but also keen to export to other markets. Towards this, the partnership we are getting into with Tubacex will enable us to address some select areas including energy, oil and gas.”
“As Midhani seeks to expand and consolidate its business across its manufacturing facilities, we are exploring new areas. Apart from the new area of Oil & Gas applications, this agreement would allow the joint development of advanced materials for the energy sector, particularly super critical power projects, and the promotion of local manufacturing capacities,” the CMD said.
The alliance, which will be a non equity engagement, would initially look at oil and gas and energy sectors and later focus on other energy efficiency segments.
Tubacex, which has a production plant in India, it added through an acquisition, a sales team and a warehouse, is seeking to play a bigger role in association with Midhani in India and other markets.