The Hindu Business Line : Sandvik sets up assembly plant

TO cater to the requirements of the golden quadrilateral project, Sandvik Asia Ltd, a player in the tooling, mining and construction and steel segment, has set up an assembly plant to build and service Sandvik rock processing equipment.

The plant would cater to the segment of gravel and smaller stones for the road infrastructure.

Talking to presspersons after the annual general meeting, Mr Hans C. Gass, Managing Director and President, said the plant would be inaugurated in May and that an investment of Rs 5 crore had already been made. He said the equipment which would be rolled out from the plant, would be a mobile one and would be placed always on a trailer, so that it could be used at any place. Orders have already started coming in for this product, both globally and in the domestic market. He said following the consolidation process, both the Kanthal Product Area at Hosur and the Seamless Steel Tube Plant at Mehsana in Gujarat were showing improvement in business and a positive operating result in the first quarter of 2003.

The company has plans to expand its installed capacity to 7,000 tonnes per annum by December 2003. The Mehsana plant caters to seamless extruded stainless steel tubes for petrochemicals, fertilisers and nuclear applications. The Hosur plant caters to heating elements, heating systems, bimetals and precision wares for electrical resistance. Mr Anders Thelin, Chairman, said in recognition of its sustained performance in quality and productivity, Sandvik had been chosen as a major global manufacturing base for Coromant Cemented Carbide Inserts in the Asia-Pacific region. The factory is gearing up to substantially enhance its production volume of inserts over the next five years eously an export plan had been drawn up for soft tools as well. Sandvik AB, the parent company, is planning to substantially increase its volume in the tooling segment and is targeting a growth of six per cent per annum, on the global level.

"Our ambition is to grow from organic means and we are looking at it. In Asia it would be close to 10 per cent per annum so that at the global level we will touch six per cent,'' he said. On the shareholding pattern, Mr Thelin said the final exit offer by Sandvik AB to the Indian shareholders had increased its holding in Sandvik Asia Ltd to 95 per cent, resulting in delisting the company from the stock exchanges. The exit offer would, however, be open up to August 31.

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