Aluminium alloy wheel manufacturer Synergies Castings has announced plans to set up a Rs. 650-crore greenfield alloy wheel-making facility near the port city of Visakhapatnam.
The company signed a memorandum of understanding (MoU) with the Andhra Pradesh government earlier this year to establish an aluminium casting and speciality alloy wheel-manufacturing facility.

The new greenfield facility, with an annual production capacity of 2.4 million units per annum, has been benchmarked at 18-inch wheel size. It is expected to have sophisticated casting, machining, painting facilities with embedded digital manufacturing technologies.

The agreement sets the stage for building one of the largest single-location alloy wheel-manufacturing projects, with a facility to expand capacity to 5 million wheels a year in phases.

Shekhar Movva, President, Synergies Castings, said: �As customer requirements become exceedingly more stringent, it is important to scale up and tech-up to remain competitive. The project cost of $100 million will be financed by the existing shareholders, internal accruals and bank debt.�

Jobs for 2,000+

�While we have evaluated several manufacturing locations, we believe Vizag, and the terms of engagement with Andhra Pradesh, offer the best opportunity in the competitive alloy wheels market,� he said.

Together with its ancillaries, this venture will provide more than 2,000 skilled jobs in the region.

This marks another step forward in the strategic growth of Synergies. Together with the ongoing expansion at the existing location, the new greenfield plant being built in Oman, and this proposed new greenfield, the company is on course to achieving 6 million wheels a year capacity by 2022-23.

Located in the Vizag Special Economic Zone, Synergies� unit has been supplying to leading original equipment manufacturers (OEMs) in India and overseas for more than 17 years.

It supplies to major automotive companies, including General Motors, Ford, Chrysler, Tata Motors and Toyota.

Emerging auto hub

With Andhra Pradesh emerging as an auto hub in the country, the State has attracted an investment of $3.7 billion (about Rs. 25,000 crore) in the auto sector. The State now hosts the upcoming project of Korean major Kia Motors, Japanese auto major Isuzu, two-wheeler major Hero MotoCorp, Apollo Tyres, Bharat Forge and Brakes India, among others. This is expected to further boost demand from OEMs.

here is company details.

 

NOTE :You need to login first to access this feature.