The JV is for a cost-competitive manufacturing facility equipped with modern technology for rubber moulding components.
Krishnamoorthy Ganesh, managing director, MRP Autorub, said: “The JV will not only help us to strengthen our manufacturing but also help sell our products across multi-industry verticals on a global scale”.
India will be the manufacturing hub for the new project which is to come up at Kakalur in Tiruvallur district near Chennai. Besides catering to the domestic market, the company plans to export its products to the US, Europe, Australia, Middle East and South America. Other than the auto industry, the project will also supply to the telecom, electrical, medical, electronics, power, energy, infrastructure and aerospace industry sectors.
The US partner will have a 26 percent stake in the JV with an option to grow this to 49 percent within five years. MDI’s foray into India through this JV will support its US customer base globally through cost-competitive manufacturing of high-end technology parts. Mike Catz, president, MDI, said: “We will also bring in over 800 formulations in rubber and urethane technology, along with its know-how, processes and systems. We have been in this business for over 55 years, manufacturing products for over 300 OEM companies in over 30 industries.”
MRP Autorub was set up in 1979 as a manufacturer of moulded rubber components like O-rings and since then has become a specialist manufacturer of valve stem seals, engine mountings, air intake hoses, radiator hoses and high temperature application silicone hoses and various other types of rubber components. The company is currently is a supplier to Ashok Leyland, Asia Motor Works, Fleetguard Filters, Greaves Cotton, Indian Defence Departments, Kirloskar Oil Engines, Mahindra & Mahindra, Rane Group, Same Deutz-Fahr India, Simpsons Engines, Tata Cummins, and Tata Motors.