Sumitomo Metals to Invest India Major Steel Wheel Maker

Sumitomo Metal Industries announced on Friday the firm decided to invest in Indian largest automotive steel wheel maker, Steel Strips Wheels (SSWL). Sumitomo Metals supports Steel Strips Wheels’ expansion and purchases 5.88% share in Steel Strips Wheels for 420 million rupees through third party allocation of new shares. Sumitomo Metals tries to increase the presence in Indian market through the scheme. Sumitomo Metals accelerates the Indian business to follow the growing market while the firm already promotes technical cooperation with Indian major steel maker for automotive flat steel.

Sumitomo Metals’ steel wheel making subsidiary, Ring Techs has provided technical assistance in operation, maintenance and quality control since 1997 to Steel Strips Wheels to serve Indian transplants of Japanese automakers. The alliance was expanded to technical development in 2009 for better service to the transplants.

Chandigarh based Steel Strips Wheels started the operation in 1991 to provide steel wheel to automobile and agricultural and industrial vehicles. The firm with 131 million rupees of capital and 2,060 of employees posted 4.217 billion rupees of sales. The firm has 12.5 million units of annual output capacity at plants in Jamshedpur, Dappar and Chennai. The firm plans to expand the capacity to 19.5 million units by 2013.

Okayama based Ring Techs has 13 million units of annual output capacity. The firm with 256 of employees posted 10.429 billion yen of annual sales. The firm has plants in Okayama and Gunma and Chinese operation of Ring-Techs Guangzhou Company.