Sandvik plans to set up Rs 45 cr plant in Pune

High speed steel taps plant to go on stream in 2008.

On an expansion drive in India, Sandvik Asia Limited (SAL), a wholly owned subsidiary of the $8-billion Swedish group, Sandvik, announced plans of setting up a new high speed steel taps plant under the Sandvik Tooling division in Pune.

The plant is expected to go on stream in the beginning of 2008 and will require an investment of Rs 45 crore.

It will have a production capacity of one million pieces in the first year with a potential for further expansion.

"Our production capacity will be tripled from the current 2,50,000 pieces per annum to one million pieces that is an increase of 7,50,000 pieces per annum," said Angala Srinivasan, general manager, tooling supply, SAL.

The company has been constantly increasing its investments in the country. "From 2004, we have tripled our investments to Rs 160 crore this year in the country," said Hakan Kingsteadt, managing director and president, SAL, who earlier this month set up a new heat treatment facility at the company's recently acquired Kennametal's manufacturing unit at Patancheru, near Hyderabad.

Upbeat about India as it is expanding across all its centres in the country, which include Mehsana in Gujarat, Pune and Chiplun in Maharashtra, Hosur in Tamil Nadu, Patancheru in Andhra Pradesh, West Bengal and Harayana.

Kingsteadt said, "Markets in India and globally are showing impressive growth and we will be able to meet the increased growth demand with these new capacities."

The increased capacities in Pune will help it meet a growing demand in the auto and aerospace industries in India and Asia.

"We will have 80 per cent of the output here for exports and 20 per cent for the domestic market," said Srinivasan, adding that this is the first two-storied manufacturing unit of the company in India.

"We will undertake further such vertical expansion here and expand further up to 2010."