Sona Koyo and Japanese Partner JTEKT to Invest in Greenfield Project

Sona Koyo and Japanese Partner JTEKT to Invest in Greenfield Project Auto component maker Sona Koyo Steering Systems Ltd along with its joint venture partner, Japanese component major JTEKT Corporation (formed by a merger of Koyo Seiko and Toyoda Machine Works), will invest Rs 150 crore for a greenfield project at Bawal in Haryana. Sona Koyo will manufacture column type electric power steering systems in collaboration with its Japanese partner, JTEKT Corporation.These steerings would be made keeping in mind the new models to be introduced by Japanese automotive majors such as Toyota, Suzuki, Nissan and Renault. The joint venture will cater to both the domestic market as well as exports. Mr Surinder Kapur, Chairman and Managing Director, Sona Group said that the total cost of the project would be Rs 150 crore with an equal equity between both the partners. He said that the new venture would ensure access to technology and efficiency in areas where the company has not had a presence. Sona, with manufacturing facilities located in Gurgaon, Nasik, Pune and Chennai, would be forming a separate subsidiary for the joint venture with JTEKT Corporation. The partners would make an initial investment of Rs 120 crore.The company is likely to set up its plant in the Bawal area of Haryana and start commercial production by early 2009.Sona Group¡¯s aggregate turnover currently exceeds $140 million with exports worth $20 million. JTEKT Corporation manufacturers steerings and driveline components, bearings and machine tools. The company has a consolidated sales turnover of 1,025,297 million yen.