Kosei Aluminum Co., Ltd.

December 16, 2010 11:36 ET

N K Minda Group Joins Hands With Kosei Aluminum of Japan

JV to Manufacture Alloy Wheels and Precision Aluminium Die Casting Parts for Major OEMs

NEW DELHI, INDIA--(Marketwire - Dec. 16, 2010) - N K MINDA Group, the USD 380 mn technology leader in Auto Components Industry, and Kosei Aluminum Co., Ltd., a leading manufacturer of Alloy Wheels in Japan, today announced the formation of a Joint Venture (JV).

The JV company, subject to the approval of the ROC (Registrar of Companies), in India shall be named KOSEI MINDA ALUMINUM CO. LTD., and will be established in Chennai. The JV Company is to engage in the development, manufacturing and sales of aluminium alloy wheels and precision aluminium die casting parts for major OE car manufacturers. The Start of Production (SOP) is set to be in summer of 2012 with a set annual volume of 300,000 pieces and from year 2014 it will increase to 600,000 pieces wheels annually.

The JV Company shall have an authorized capital of 500 million rupees with an equity share of 60% -40% of KOSEI and MINDA respectively. The initial investment and the most important aspect of the JV is the availability of top-notch Japanese technology in aluminium casting, which KOSEI will infuse in this joint venture.

In order to cover the broad market opportunities in India, KOSEI and MINDA will establish another joint venture on the outskirts of Gurgaon in Northern India and in this case MINDA will hold the majority share.

Brief highlights of the Joint Venture
Chief Executive Officer: Mr. Masayoshi Inomata (currently, Trustee member of Board)
Capital: 500 million rupees (Approx. 10 billion yen)
Investment amount; 8.4 billion rupees (16 billion yen)
Investment ratio: 40% Kosei Aluminum Co., Ltd.,
  20% Kosei Aluminum (Thailand) 
  40% NK MINDA Group 
Product; Aluminum wheels for automobiles

About N K MINDA Group:

N K Minda Group, a technology leader in Auto Components Industry, is a leading supplier of proprietary automotive solutions to OEMs as Tier-1. It manufactures Switches, Electric Mirrors, Horns, Lamps, Blow molding Components, Electronics & Sensors, CNG-LPG Kits, Batteries & Seats for Original Equipment Manufacturers (OEMs). More information on www.mindagroup.com.

Note: This document contains forward-looking statements about Kosei and MINDA, which are based on the beliefs, opinions and expectations of the company's management as the date of this press release.

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