GP Goenka-controlled Stone India has signed an understanding with Sumitomo Electric Industries of Japan to enter into a joint venture to locally manufacture air springs in India.
The two companies signed the understanding on February 15.
Stone India had executed a Technical Collaboration agreement with Sumitomo Electric Industries, Japan in November 2007 for selective manufacturing and assembly of Air Spring systems for Railways in India.
Subsequently Stone India commenced bulk supply of Air Springs to Indian Railways.
The company earlier had entered into a separate agreement with Tokai Rubber Industries,
Japan, a subsidiary of Sumitomo Electric Industries for supply of conical springs for primary suspension system of Railways. This will help the company to provide complete end-to-end solution of pneumatic suspension system to Railways through supply of primary, secondary, suspension products and pneumatic control system with in-built failure detection device.
According to the contours of the arrangement, this process will start with Stone India exporting metal parts of air springs to Sumitomo Electric Industries, Japan and will finally culminate in a joint venture.