The Hindu : Business : Bharat Forge venture with FAW of China

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Friday, Dec 09, 2005

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Bharat Forge venture with FAW of China

Staff Correspondent

To have 52 p.c. stake in the new company

MUMBAI: Bharat Forge Ltd. (BFL) on Thursday signed a joint venture contract with FAW Corporation of China for its forging business. The forging company of the FAW Group is the largest in China and through the joint venture, which will be formed by BFL and the FAW Group by hiving off the latter's forging company into the joint venture, BFL will become the largest forging company in China with a strong customer base across segments.

Without disclosing the sum paid, B. N. Kalyani, Chairman, BFL, while addressing the media here on Thursday, said his company would hold a majority 52 per cent stake in the venture which will be called FAW Bharat Forge (Changchun) Company Ltd. It will make a wide range of highly engineered forged auto components for commercial vehicles, passenger cars and light trucks. It will address the local Chinese manufacturers and the Chinese plants of the global original equipment manufacturers (OEMs).

"We have successful joint ventures for car manufacturing with Toyota and the Volkswagen Group with multiple plants in China and make three lakh vehicles for Volkswagen and 1.50 lakh vehicles for Toyota annually," said Zhu Yanfeng, CEO, FAW Group.

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