New Delhi, Feb 24 (UNI) Amtek Auto Ltd has entered in to an MoU with American Railcar Industries Inc to set up a 50:50 joint venture in railcar manufacturing.
American Railcar Industries Inc (ARI) is a leading designer, manufacturer and marketer of a variety of railcars in north America.
ARI also repairs and refurbishes railcar, provides fleet management services and designs, manufacturers and markets certain rail cars and other industrial components used in this field.
The signing of MoU is part of the Amtek Auto's strategy to diversify by the setting up Transportations systems Division and this JV will be part of the new division.
The transportation division, which includes railways, aerospace and surface transportation system, will have within the next 4-5 years growth of about Rs 1,500 crores in sales and will give a good balance for the Amtek with it already highly successful automotive division, said a statement.
Amtek said it is currently investigating other potential opportunities and acquisition for the transportation division both in the US and European markets.
In recognition of the country wide railway expansions planned in India for both intercity and Intra city metro railway system Amtek has planned an outlay of over Rs 500 crores into its railways business, which would include this JV with ARI.
Besides the railcar JV, Amtek is also planning to set up forgings, casting and machining facilities on its own to manufacture components for the railcar and other railway application.
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