Flender Closes Down Gear Box Factory

Flender Ltd, a former Williamson Magor group company and now controlled by Flender AG of Germany, has closed down its gear box manufacturing unit in Calcutta.

The company may go into the real estate business in future, using the premises of the factory. It has decided to carry on its manufacturing activities in its existing unit at Kharagpur, sources said.

According to company sources, changes in the business environment and consequently in the market place, has created changes in the demand pattern of the product manufactured by the company.

Particularly, the products manufactured at Majerhat, the unit where operation has been suspended, were drastically losing market, which, having faced no demand, made its business totally unviable.

 

In fact, for the previous two years, the unit was operating on continuous loss, pointed out sources.

In 1997-98 the loss is expected to mount.

This has necessitated the company to review its overall operations and manpower requirement.

However, company sources pointed out that the Kharagpur unit is well equipped to manufacture high quality gear boxes.

The company has offered voluntary retirement scheme (VRS) to its employees at the Majerhat factory.

Flender AG, which in majority is belonging to the Deutsche Babcock AG (DB), has controlling stake in Flender Ltd.

The German parent, Flender AG has plans to expand its product range in the field of large gear units, which may have a positive impact on the business prospects of its Indian arm.

With a sales volume of DM 1.5 thousand million, Flender belongs to the internationally leading suppliers of gear units for the cement, steel, materials, plastics machinery and wind power plants.

For the new core business, marine gear units, with a sales figure of around

DM 50 million, the company expects good growth due to increasing shipping activity.

The gear units of the company are especially applied in ferries, container ships, special tankers and cruise ships.