Mitsubishi Materials Establishes Carbide Tool Sales Base in India

Mitsubishi Materials announced on Monday the firm establishes a sales subsidiary of cemented carbide tools in India and starts operation on November 1. The firm decided the establishment when Japanese automakers and auto parts makers plan to expand their output capacities in India and carbide tool demand is increasing for processing of automotive core parts such as engine and transmission in the country.

The new sales subsidiary, named MMC Hardmetal India, is located in Bangalore City of South India with about 100 million yen of capital 99.9% of which Mitsubishi Materials invests and 0.1% MMC Metal Singapore, Mitsubishi Materials’ sales subsidiary for cemented carbide tools in Singapore. MMC Hardmetal India will start operation with 32 employees and aims 700 million yen of annual sales for fiscal 2007 ending March 2008.

Mitsubishi Materials has held 15 sales affiliates for cemented carbide tools in world 13 countries including Japan. The firm already had subsidiaries in Brazil, Russia and China, economy developing markets so called BRICs. Mitsubishi Materials can cover every country of BRICs where carbide tool demand is expected to expand largely thanks to the establishment of Indian subsidiary.