MAHLE and India Pistons Sign Agreement for Joint Venture
MAHLE GmbH and India Pistons Ltd. have signed an agreement to form a joint venture for the manufacture of pistons for new engine applications.
The joint venture will primarily focus on the production of pistons for gasoline and diesel engines for the fast growing Indian market requiring compliance with future emission regulations, such as Euro IV and above. It will also introduce new piston designs with oil-cooled galleries for new diesel engine generations.
The new company, which will operate as MAHLE India Pistons Ltd., is a 50/50 joint venture with MAHLE holding the industrial and technological leadership. The manufacturing facilities of the joint venture will be located in India Pistons Ltd.’s plant near Chennai, India. The actual production capacity of approximately 3.2 million pistons per year is expected to double within three years. In the year 2008, the company will be employing a work force of about 300 employees and is expected to achieve sales of approximately $37 million.
Prof. Dr. Heinz Junker, chairman of MAHLE Group Management Board and CEO, stated, “We believe that MAHLE India Pistons Ltd. has the potential to become the leading piston company for the Indian market in terms of technology and competitiveness. It is also a strategic step to improve our global presence and global production footprint.”