Pengg Usha Martin O.T. wire plant

Usha Martin Limited is pleased to announce the inauguration of its joint venture for manufacture of Oil tempered wires – Pengg Usha Martin Wires Private Limited.
 
Pengg Usha Martin Wires Private Limited is a joint venture company promoted by Usha Martin Limited and Joh Pengg AG, Thoerl, Austria – an TS 16949 company, pioneer and global  leader in the production of oil tempered wire for the automotive industry.  Joh Pengg AG will hold 60% equity in the joint venture while Usha Martin will hold 40%. 
 
The joint venture agreement between the two companies was signed on 21st March, 2006 and in less than two years the manufacturing facilities at Ranchi is being inaugurated today by Mr Gottfried Pengg, Chairman, Joh Pengg and Mr B K Jhawar, Chairman, Usha Martin Limited.
 
This is one of the most modern and technologically advanced manufacturing facilities.  The infrastructural facilities at the plant has been set up in such a manner that future expansion will be faster and cost effective.
 
Oil tempered wire, an import substitute product finds use in the automobile industry and in view of the tremendous growth of the industry in India, the demand for the same has been continuously rising. 
 
The cost of first phase of the project is Rs.46 crore which is being funded by share capital of Rs.18 crore; balance Rs.28 crore being funded from promoters loan of Rs.11 crore and long term loans of Rs.17 crore.
 
Speaking on the occasion, Mr Gottfried Pengg, Chairman, Joh Pengg said, ‘We are indeed happy to partner with Usha Martin Group in India and are confident that the combined resources of our two companies will make this enterprise highly successful.’
 
Commenting on the development, Mr B K Jhawar, Chairman, Usha Martin said “Our Group is always committed to introducing high quality value added products with world class technologies and our joint venture with Joh Pengg of Austria to manufacture oil tempered wires is yet another initiative in that direction.”