Carborundum signs pact with CEEB

Chennai, Jun 15 :Carborundum Universal Limited (CUMI), a leader in abrasives and ceramics market, has signed a joint venture agreement with China Engineering and Exploration Bureau (CEEB) to acquire four per cent stake in the parent company JINGRI for an investment of 4.9 million US dollars.

The Stake would be acquired by JINGRI issuing fresh shares to CUMI in the capital of Jingri. The Joint venture would be re-christened as ''JINGRI CUMI Super Hard Metal Company Ltd'', a CUMI release said here today.

The release said the funds raised would be used to set-up a state-of-the-art 2000 tons Bonded Abrasive plant at a new site in the Yanjiao Province, for which the land has been allotted by the Province.

The new facility would house all the Jingri and its JV operations.

CUMI would supply the technology for the Abrasive plant, besides involving in the management of the business as a JV Partner.

With this JV, CUMI would move a step further in its twin stated objectives of offering the Full Range of Abrasives and creating a strong manufacturing back-end in India and China to serve its Global Customers.

Jingri Industrial Diamond Company (JINGRI) is one of the leading Synthetic Diamond manufacturing companies in China since 1970 and CUML is part of the Rs 7300 crore Conglomerate Murugappa Group.

UNI