Sumitomo Metal Industries Ltd (Sumitomo Metals) has agreed to establish a joint venture with Amtek Auto Ltd (Amtek), a manufacturer of automobile parts in India, in order to enter into the Indian market where high growth is anticipated. This is in line with Sumitomo Metals strategy to expand forged crankshaft business. Sumitomo Metals has decided to enter into the crankshaft market in India, in order to capture demand in that growth market. This is based on corporate strategy to “add strength to strong areas.” With this entry to India, Sumitomo Metals will have a global “tetrapolar” production system (Japan, US, China, and India) and cement its global share in forged crankshafts to over 10%. A joint venture is to be formed with an investment of 40% by Sumitomo Metals, 10% by Sumitomo Corp., and 50% by Amtek. Sumitomo Metals will send a representative to assume a position of CEO. The JV company will acquire Amtek’s Dharuhera plant near New Delhi. The plant is newly equipped with a 4000tn pressing machine.
