To develop and manufacture fully machined ferrous casting products for automotive and other industries
Setco Automotive has teamed up with Lingotes Especiales S.A. of Spain to form a joint venture, Lava Cast Pvt. Ltd., to develop and manufacture fully machined ferrous casting products for the automotive and other industries at a facility in Gujarat.
The partners have decided to invest 30 million euro in the joint venture over three years. As part of this agreement, Lingotes Especiales will come on board of Lava Cast as the technology partner.
“Lingotes will help us to extend our reach into new customer bases andbuild our collective product portfolio in the coming years. The Indian foundry market holds great promise and has the potential to emerge as a key global export hub,” said Harish Sheth, Chairman & Managing Director, Setco Automotive. “We are looking to create a niche for ourselves in this market with this fully machined casting set up, which will add value. With the support of Lingotes Especiales, Lava Cast is confident of becoming a reliable company meeting global quality standards. Setco will also offtake the castings for its own captive consumption,” he added. The proposed foundry, adjacent to the current clutch manufacturing operations of Setco at Kalol in Gujarat, will start commercial production in one year.
“Setco has a strong presence in India in the clutch business. With them, we are confident of creating a reliable supply base of castings for the international market. Our long-standing experience in this sector will substantially reduce the uptime of this new project,” said Vincent Garrido, Chairman, Lingotes Especiales.