Setco, Lingotes Especiales enter into 30 million euros JV

June 26, 2014 4:18 am

 Setco Automotive Ltd (Setco) and Lingotes Especiales S.A. (Lingotes) announced the formation of a 30 million Euros joint venture over 3 years called Lava Cast Pvt. Ltd., focused on developing and manufacturing fully machined ferrous casting products for the automotive and other industries.
The JV company will have equity participation by both companies. As part of this agreement, Lingotes Especiales will come on board of Lava Cast as the Technology Partner. The proposed foundry will start commercial production in one year.
“The world-class Lava Cast foundry is the next step in our vision which will make Setco Automotive the preferred OEM supplier or partner globally. In Lingotes, we found a strategic partner to help us achieve this vision. Bringing over 40 years of experience in the foundry industry and key OEM clients; Lingotes will help us to extend our reach into new customer bases and to build our collective product portfolio in the coming years,” said Harish Sheth, Chairman and Managing Director, Setco Automotive. “With the support of Lingotes Especiales, Lava Cast is confident of becoming a reliable company meeting global quality standards. Setco will also off take the castings for its own captive consumption.” 
Vincent Garrido, Chairman Lingotes Especiales said, “Setco has a strong presence in India in the clutch business. They enjoy excellent relationships in the sector, and have a strong understanding of manufacturing. With them, we are confident of creating a reliable supply base of castings for the international market.”