Motherson Sumi, Balda to set up 40:60 JV

Motherson Sumi Systems and Balda AG have agreed to set up a 40:60 joint venture company for the development of precision moulds, and design and manufacture of parts for mobile phones, including accessories and appliances, at Chennai.

According to a release issued by Motherson Sumi to the BSE today, the JV will have an investment of $10 million in the next 12-18 months, and the plant is scheduled to be ready for production by the end of the second quarter of 2006. "The joint venture company expects to have sales of $18 million in 2006-07," the release added.

Balda is the world's second largest systems supplier of precision components made from high-performance plastics for the mobile phone industry, the release said.