Sundram Fasteners forms joint venture with German firm

Sundram Fasteners Limited, part of the $5-billion TVS Group, has entered into a 50:50 joint venture with Wolfgang Walter Naumann of Germany to set up a plant for manufacture of fasteners for wind energy generators (WEG). The company has invested Euro 3 million by way of equity capital and loans.

“As the emphasis on production of clean energy is likely to gather pace after the shutdown of nuclear plants, demand for WEG is likely to increase. The facility, located at Hohenstein in the eastern part of Germany, is expected to commence operations during the third quarter of the 2012 calendar,” it stated in its annual report.

Meanwhile, the company said in 2011-12, that it had incurred Rs 137.73 crore towards capital expenditure on existing and new projects. It has set up facilities at Mittamandagapet in Tamil Nadu for the manufacture of fasteners for use in WEG. Currently, a substantial portion of the demand of Indian wind-turbine manufacturers is met through imports.

It said that the global demand for fasteners for wind energy industry will be quite high considering the emphasis being placed on generation of clean power. Work on the company’s project for manufacture of sprockets at the factory in an SEZ at Maraimalainagar is complete and supplies have commenced.

The company proposes to expand capacities in the manufacture of all its products lines. It also proposes to add secondary capacities to develop new products for its customers. The total capital expenditure commitments during 2012-13 are likely to be around Rs 150 crore, subject to market conditions and internal accruals, it said in a communication to its shareholders.