INDIA: Magneti Marelli, Maruti, ink ECU JV
Magneti Marelli, Suzuki Motor Corporation and Maruti Suzuki India have signed an agreement for the creation of a joint venture in India, aimed at the production of electronic control units (ECU) for diesel engines.
According to the agreement, Magneti Marelli will contribute 51% of the share capital of the new company, Suzuki, 30% and Maruti, 19%.
The initial investment is expected to total approximately EUR15m (about INR750m). The project will be funded through a mix of equity and debt.
The industrial facilities of this joint venture company will be located in Manesar, in the industrial district of Gurgaon, approximately 40km southwest of New Delhi. It will be part of the suppliers' park spread over 100 acres, being set up by Maruti Suzuki at its campus in Manesar.
The start of production is scheduled for the end of 2008. Production of this plant should reach a total of about 500,000 control units per year, when working at full capacity.
The electronic control units produced in Manesar will be initially used for Maruti Suzuki diesel cars and later by other car manufacturers.
Magneti Marelli CEO Eugenio Razelli said: "The joint venture with Suzuki and Maruti significantly strengthens an important partnership already in existence, giving the car maker the possibility to rely on competitive systems featuring cutting-edge technology and the components maker the chance to increase its presence in a strategic and fast-growing market."
Magneti Marelli is part of the Fiat Group.