Pioneer Alloy outlays capacity expansion

Chennai: Pioneer Alloy Castings is planning to double its capacity from 3,500 to 120,000 tonnes per annum by 2011 with an investment of around Rs 150 crore.

Pioneer Alloy manufactures and supplies castings for tractor parts, automotive and elevator components, and earth moving equipment.

Pioneer has acquired land at Tada in Nellore district of Andhra Pradesh for setting up its third high pressure unit with an investment of Rs 65 crore. The plant will have a monthly capacity of 5,000 tonnes. Presently, it has a unit each in Andhra Pradesh and Tamil Nadu.

The company will fund the proposed expansion and acquisition through debt and internal accruals. It also plans a private equity and go public.