NEW DELHI: As part of its foray into railcars, auto component major Amtek has entered into a strategic pact with Missouri-based American Railcar Industries (ARI). The JV has been signed through Amtek Transportation Division, a subsidiary of Amtek Auto.
The JV, which will be owned 50% by an ARI subsidiary and 50% by Amtek Transportation Division, is expected to manufacture products from a new facility to be set up in India. The partners expect to commence construction of the facility during the second half of this year and it is expected that the JV will begin railcar production in Q3 of 2009.
The JV would use ARI manufacturing methods and would initially manufacture railcar types that are currently being sold in India.
The JV partners anticipate the venture to introduce and build railcars that are new to the India market within the next few years. The JV is also expected to produce railcars and component products for sale in South East Asia and the Middle East. American Railcar Industries is a leading North American manufacturer of hopper and tank railcars.
ARI also repairs and refurbishes railcars, provides fleet management services and designs and manufactures certain railcars and industrial components used in the production of its railcar as well as railcar and non-rail products produced by others. ARI provides its railcar customers with integrated solutions through a comprehensive set of high quality products and related services.
Amtek Auto CEO John Flintham said, "this is the first solid announcement for Amtek’s newly-formed transportation division which will cover not only railways but is targeting aerospace industry. We believe the railway business alone will touch Rs 2,000 crore in the next few years and will be a significant contributor to the group business."
