Chennai is fast becoming a preferred destination for autocompanies and the latest entrant is Modine Manufacturing of the US. The $1.6 billion company has floated a 100 percent subsidiary to make powertrain cooling systems. It also plans to enter engine cooling through either another wholly-owned arm, joint venture or an acquisition.
Worldwide, Modine supports various industrial segments (including automotive) by providing heat transfer solutions. For auto OEMs, the company makes power train cooling systems, engine cooling modules, radiators, condensers, charge air coolers, power steering coolers, transmission oil coolers, on-engine cooling systems for exhaust gas recirculation, engine oil, fuel and intake air filters etc. In India, it will focus on powertrain cooling systems.
It has earmarked $40 million for a facility and has bought land in the SIPCOT industrial area in Sriperumbudur. Construction will begin this month and production in 2008.
The facility will manufacture radiators and charge air coolers for commercial vehicles, off-highway vehicles, bus and trucks. It will also make bus air conditioning systems (now imported from its Korean unit) for Leyland and Tata Motors.
T MURRALI