Amtek in 50:50 JV with Japan's Riken Corporation for iron casting foundry.

Amtek India Ltd., the country's biggest iron casting company, has formed an equal joint venture with Tokyo-based Riken Corporation to build an iron casting foundry at Bhiwadi in Rajasthan.

The joint venture, Amtek Riken Casting Pvt Ltd., will consolidate Amtek's hold over the iron foundry business, a senior company executive said, adding that the new company will initially produce 15 lakh iron camshafts a year for the automobile industry.

'Amtek and Riken are known for quality automotive products and this strategic partnership brings compelling value to our manufacturing platform,' said John Flintham, senior managing director at Amtek Group. 'Riken has a long standing and successful track record of producing engine and performance components that would be leveraged for our new venture.'

The joint venture will require an initial capital of Rs. 25 crore, which will be provided by Amtek through cash reserves, the company said in a statement. The foundry is scheduled to start operations by the fourth quarter of 2015.

ET