Divests its holding in the German subsidiary
Sundram Fasteners has restructured its international operations in order to maximise the revenue potential and shareholder's value. It has created a new subsidiary called Sundram International, based in the United Kingdom.The Chinese Company Sundram Fasteners (Zhejiang) and the UK subsidiary Cramlington Precision Forge have become subsidiaries of Sundram International. Both these companies are profitable and have been paying consistent dividends to the parent company. The new company, Sundram International will be used as a vehicle, as and when the opportunity arises to acquire technology companies abroad.
As part of the restructuring, Sundram Fasteners has found it prudent to divest itself of the German subsidiary Peiner Umformtechnik and its affiliates. The German subsidiary has been impacted adversely since the recession of 2008 and has not been performing to the expectation of Sundram Fasteners. Accordingly, the German subsidiary has been divested to a German investor.
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