| The financial details of the JV, to be called FAW-Bharat Forge Changchun Ltd, were not divulged. With this, the Pune-based forgings major has become the largest forgings manufacturer in China, with a customer base across segments. |
| Baba N Kalyani, chairman and managing director, Bharat Forge, said, "China is a very large player with a market for 5 million vehicles, growing at 11 per cent annually. In the next five years, the market size will be 10 million. The opportunity in China is huge. And it is a low-cost sourcing base serving the dual shore model adopted by Bharat Forge." |
| Kalyani, however, declined to comment on the deal size, which the industry observers put at nearly Rs 240 crore. |
| The Bharat Forge counter today closed on the Bombay Stock Exchange at Rs 385.90, 1.21 per cent higher than yesterday's closing at Rs 381.30. |
| The JV would add 1,00,000 tonne capacity to India's largest manufacturer of forgings. |
| "Inducting a partner like Bharat Forge would sharpen the design and engineering skills for the company adding value to our products," said Zhu Yanfeng, chief executive officer of the FAW group. |
| FAW Forge will manufacture a wide range of highly engineered forged auto components for the commercial vehicles, passenger cars and light trucks markets for China and across the globe. |
| FAW Forge, which has its manufacturing facility at Changchun in northern China, has a 1,700-strong workforce. |
| Its parent company, FAW Corporation, is the largest automobile manufacturer in China, making one million vehicles every year, which is equal to the entire Indian automobile industry. |
| FAW Corp, making 5 lakh passenger cars for itself and global car firms, including Volkswagen, Audi and Toyota, generates $14 billion annually. |
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