New Delhi, March 7 (IANS) Auto-component manufacturer Sona Group on Monday entered into an agreement to buy out the entire stake of its Japanese partner Mitsubishi Materials Corporation in Sona BLW Precision Forgings Limited (SBPFL).
According to the Sona Group, the deal entails acquisition of Mitsubishi Materials Corporation's 25 per cent stake in SBPFL. The group did not divulge the details of the stake buy-out.
SBPFL was previously known as Sona Okegawa. It was formed in 1995 with a 75:25 joint venture (JV) partnership between Sona Autocomp Holdings and Mitsubishi Materials. The company in 2008 acquired the precision forging business of ThyssenKrupp.
"We are moving ahead rapidly to cement our global leadership position in the precision forging business," Sunjay J.Kapur, Chief Executive Officer, Sona Group.
"As a totally private company, Sona BLW Precision Forgings Limited can now delve deeper into R&D and make significant commitments and investments into the future of the global precision forgings business."
According to Kapur, the global automotive industry is in a transition stage fuelled by the demand for green mobility and e-mobility.
"There is more change expected to happen in the next ten years than has happened in the last fifty years in the automotive world," Kapur said.
"This wave of change opens up new frontiers for our industry to invest in automation, technology and skill upgradation to design future-ready products and components. We at Sona group wish to seize the opportunity to further consolidate our global market share by building products around our patented forging technology."
Currently, SBPFL has seven plants spread over India, Germany and Hungary and employs over 2,300 people worldwide.
The company's key global customers include OEMs (original equipment manufacturers) such as Daimler, Volkswagen Group, Renault, MAN, Scania, BMW, Porsche and Caterpillar among others.
SBPFL's Indian arm supplies to OEMs in the passenger and commercial vehicles as well as tractor segments like Maruti Suzuki, Tata, Mahindra & Mahindra, TAFE, Escorts, Volvo Eicher, ITL and Bharat Benz.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
About VDC
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.