Sterling Tools Ltd has signed a memorandum of understanding (MoU) with South Korea’s Yongin Electronics Co. Ltd., a supplier of components to Hyundai Kia Motor Group.

According to the company’s statement, the agreement is expected to generate ₹250 crore in business over the next five years.

Sterling Tools Limited will set up a new greenfield manufacturing facility.

The MoU enhances Sterling’s capability to provide solutions for EV & Hybrid space and other automotive applications, incorporating Yongin’s latest technology, per the company.

Also read: Stocks that will see action today—April 18, 2024

Anish Agarwal, Director from Sterling Tools Limited, said, “This MoU demonstrates Sterling’s commitment to developing the EV and Electronics ecosystem and contributing to “Make In India”. We are one step closer to our goal of strengthening our presence and offerings as a provider of green energy solutions in the automotive industry.”

KH Kim, CEO of Yongin Electronics Co., Ltd said, “It brings us great pleasure to announce our partnership with Sterling through the signing of an MoU. We are prepared to embark on a journey of mutual growth and collaboration within the Indian EV industry, contributing positively to its advancement.”

Sterling Tools stock rallied 8.65 per cent to trade at ₹365.60 on the NSE as of 10.17 a.m.