Sumitomo Metals to Launch Indian Crankshaft Joint Venture in July

Sumitomo Metal Industries announced on Monday the firm has new plant in India to make forging crankshaft. The firm establishes the joint venture with Amtek Auto Limited, which is New Delhi based automotive parts maker, in late July to start the operation. Sumitomo Metals will have 9.3 million units of output capacity with the 4 areas in Japan, USA, China and India securing more than 10% share in the world market.

Amtek Auto controls 50% of the joint venture, SMI Amtek Crankshaft with 540 million rupees of capital, in which Sumitomo Metals has 40% share and Sumitomo Corporation has 10% share. Sumitomo Metals sends CEO of the venture. The venture purchases Amtek Auto’s existing plant in New Delhi with annual 800,000 units of output capacity.

Sumitomo Metals has around 4 million units of annual output capacity of crankshaft in Osaka, Japan, around 2.7 million units of capacity in Kentucky, USA and 1.8 million units of capacity in Guangzhou, China. The firm expands the capacity and production area through the joint venture.

India is the growth center of automobile production as China. The automobile demand is expected to grow significantly in mid- and long-term despite of the recent slump. The higher automobile production will lift the crankshaft demand.