Stanadyne Automotive Corp of the US, a $3 billion engine and precision components manufacturer, is setting up a wholly owned subsidiary in the country for designing, manufacturing and marketing of highly engineered precision engine components. The proposed arm would also produce precision components and assembly and diesel systems.
The company is also contemplating the possibility of undertaking investments in joint ventures with local partners. The arm would look at establishing downstream ventures with domestic partners as well, sources said.
According to the sources, the US firm is planning to capitalise the arm initially at $2 million, which will be increased from time to time, depending on the future investment requirement.
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Stanadyne is a leading global supplier of precision engine components and is among the world's best known makers of fuel injection equipment and precision engine components for industrial units' use.
Precision Engine Products Corp, a group division, designs and manufactures high volume roller rocker arms and lash adjusters for leading manufacturers of automobile engines at its production facility in Tallahassee, Florida, the US. Tallahassee unit assembles in excess of 50,000 per day roller rocker arms and 1,50,000 lash adjusters daily.
The local investment is part of Stanadyne's global plan to establish joint ventures or wholly owned companies in foreign markets. These companies will undertake manufacturing activities, service the domestic markets and undertake exports. The products manufactured in India will also be exported to nearby markets, the sources said.
In the US, Standayne Automotive is divided into three business groups -- Diesel Systems Group, Precision Engine Products and Precision Components and Assembly.
The company started way back in 1876 as the Hartford Machine Screw Company. Thereafter, Stanadyne has pioneered the development of the automatic machines for screw production.
Growing through the industrialisation of America, the Hartford Machine Screw Co became a leading supplier of precision metal components for industries throughout North America manufacturing components in several locations in the US.
During the 1940s, the company began to develop the mechanical rotary fuel distribution pump that today powers many of the world's diesel engines.
As the market grew for diesel pumps, other innovative products were developed to serve the needs of the additional elements of the diesel fuel system. Today, filters, injectors, fuel management systems, support product and additives complete the product offering for fuel systems.
The Precision Components & Assembly division manufactures complex, customer-designed, proprietary components, assemblies or modules, where high precision, sophisticated assembly or testing is required.