MUMBAI: Delhi based-Amtek Group Company Amtek Transportation Systems, a subsidiary of the group flagship company Amtek Auto, has signed a joint venture agreement with the leading American Railcar Industries Inc based in St Charles, Missouri.
In the new company 50 per cent stake will be owned by the ARI subsidiary and balance by Amtek Transportation systems is expected to manufacture products from a new facility to be located in India.
The parties currently expect to commence construction of the facility during the second half of this year it is expected that the JV will begin railcar production in the third quarter of 2009.
The JV would use the manufacturing methods that ARI has developed and would initially manufacture railcar types that are currently being sold in India. It is also anticipated that the JV will produce railcars and component products for sale in other specific countries in South East Asia and the Middle East.
This JV will cover not only railways but also target huge potential in the aerospace industry.
American Railcar industries is a leading North American manufacturer of hopper and tank rail cars. It also repairs and refurbishes rail cars, provides fleet management services and designs and manufactures certain rail cars and industrial components used in the production of its railcar as well as rail car and non rail products produced by others.
On Thursday, Amtek Auto shares ended up 3.15 per cent to Rs 250.25 on BSE.
