Nation Current Affairs 14 Mar 2018 Synergies Castings L ...

Synergies Castings Limited to set up a unit in Visakhapatnam

DECCAN CHRONICLE.
Published Mar 14, 2018, 6:48 am IST
Updated Mar 14, 2018, 6:48 am IST
It has signed a MoU with AP govt to establish a Greenfield aluminium casting alloy wheel mfg facility in Vizag.
Synergies Castings Limited, India’s leading aluminium alloy wheel manufacturer has signed a MoU with Andhra Pradesh government to establish a major Greenfield aluminium casting and speciality alloy wheel manufacturing facility in Vizag and to create 2,000 jobs.
 Synergies Castings Limited, India’s leading aluminium alloy wheel manufacturer has signed a MoU with Andhra Pradesh government to establish a major Greenfield aluminium casting and speciality alloy wheel manufacturing facility in Vizag and to create 2,000 jobs.

Visakhapatnam: Synergies Castings Limited, India’s leading aluminium alloy wheel manufacturer has signed a MoU with Andhra Pradesh government to establish a major Greenfield aluminium casting and speciality alloy wheel manufacturing facility in Vizag and to create 2,000 jobs. This new Greenfield facility with an annual production capacity of 2.4 million wheels per year, benchmarked at 18 inch wheel size will have the most sophisticated casting, machining, painting facilities with embedded digital manufacturing technologies; to offer its’ customers the best possible product at the most competitive prices.

The project cost of $100 million will be financed by the existing shareholders, accruals and bank debt. With the auto industry poised to see a major growth in the coming years, and the increased penetration of alloy wheels in India, SYNERGIES is gearing up to meet the steep demand by increasing production capacity manifold and fulfilling the needs of its veritable customer base.

 

This agreement with  Andhra Pradesh government sets the stage for building one of the largest single location alloy wheel manufacturing projects, with intent to expand this to 5 million wheels in multiple phases. Shekhar Movva, president, commented, “As customer requirements become exceedingly more stringent, and consequent need to invest in substantial capex for sophisticated production, testing and development facilities, it is important to scale up and tech-up to remain competitive.  While we have evaluated several manufacturing location options in the country, we believe that Vizag, and the terms of engagement with the state of Andhra Pradesh offers the best opportunity to be the most competitive manufacturer of alloy wheels in the country.”

 

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