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BURGOS, SPAIN (June 18, 1:15 p.m. ET) -- Spanish car component maker Grupo Antolin is considering establishing a string of joint venture production operations across the developing world with Japanese parts supplier Kasai Kogyo Co. Ltd.
This year, the two firms have already agreed to form a 50:50 business in Chennai, India. The venture, Antolin Kasai-Tek Chennai Pvt. Ltd. (AK-Tek) has capital of almost 10 million euros.
The joint business, which was recruiting personnel in May, is forecast to achieve annual sales of 9.3 million euros by 2014.
Burgos-based Antolin already operates three plants in India, one of them in Pune, another in Chennai and the third, a joint venture with Krishna Maruti near Delhi. It also runs a design center in Pune.
Meanwhile, the two companies are discussing forming more partnerships with other manufacturing units turning out plastics parts for leading automotive OEMs in Mexico, Brazil, China and Russia.
In Mexico Kasai Kogyo subsidiary Kasai Mexicana already runs a components plant in Leon. The firms could launch a 50:50 joint business in Leon aimed at supplying parts for Nissan as soon as Fall 2013.
Nissan is set to raise its production capacity in Mexico to 1.3 million units per year - more than it has in Japan - when it brings on stream a new plant in Aguascalientes as soon the second half of 2013.
With investment of between 20 million and 30 million euros, the project under study would see Kasai Mexicana’s existing interior parts plant output boosted by 50 percent, Japan’s Nikkei business daily reported recently.
Antolin has four existing auto component plants in Mexico. These include two vehicle door units in Hermosillo and other parts plants in Silao and Saltillo.
Other joint ventures being studied are likely to be based on the Spanish group’s existing operations in China, Russia and Brazil. Last year, Antolin launched the first stage of a new interior parts plant in St Petersburg, Russia.
In its latest annual report Antolin group referred to the exceptional growth performance of the automotive industry in the BRIC nations (Brazil, Russia, India and China) estimated at 10 percent against the global figure of 6 percent.
The group said it will continue to expand into high-growth markets like Asia and Latin America and analyze “inorganic growth opportunities” that will allow it to strengthen and consolidate its present competitive position.
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