Mumbai, July 4 (UNI) Carborundum Universal Ltd, India (CUMI), a flagship company of the 2.4 billion dollar Murugappa Group, is acquiring 51 per cent stake in Fozkor Zirconia (Proprietary Limited (FZL) in South Africa to take forward its minerals business.
The Company in a release here said that FZL was the third largest producer of Zirconia in the world, with an installed capacity of 4,200 tonnes a year. Fumed silica is also produced as a by-product of the furnace operation. The sales of FZL in 2007-08 were USD 16 million.
Foskor, the parent company of FZL was seeking a strategic partner for its next phase of expansion and growth. CUMI is one amongst the two companies globally, with interests in abrasives, ceramics, refractories and minerals and was hence a logical choice. CUMI is a fully vertically integrated company with operations in Australia, Canada, China, Russia, Middle East, US and in India. CUMI brings to FZL its mineral processing knowledge, its brands, market access, application engineering expertise and global management practices. This will help FZL to grow its range of products and business.
While CUMI through its investment subsidiary, will hold a 51 per cent stake in FZL, the balance 49 per cent will be held by Foskor (Proprietary) Limited and two other South Africa-based entities.
This change is expected to benefit FZL's customers, employees and the community in Phalaborwa.
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