Sumitomo Electric Industries establishes Powder Metallurgy joint venture in Indonesia

March 27, 2012

Japan’s Sumitomo Electric Industries, Ltd. has agreed with two major Indonesian corporations, WLK Group and Santini Group, to establish a joint venture that manufactures and sells sintered parts in the country.

sumitomo

Sintered structural parts manufactured by

Sumitomo Electric Industries

The Sumitomo Electric Group has to-date expanded its sintered products business from Japan to North America, Europe and Asia, and has supplied a variety of sintered parts to automakers, auto parts manufacturers and other industrial customers around the world. It has thus far supplied the Indonesian market through its Malaysian and Thai plants.

In Indonesia, however, the recent growth has boosted local automotive production and prompted foreign auto parts manufacturers to tap into the market.

In light of this situation, the Sumitomo Electric Group has decided to collaborate with WLK and Santini, leaders in the Indonesian automotive market, to jointly establish a company to manufacture and sell sintered products in the country. This joint venture aims to expand the sales of these products, for which great demand is expected.

The new company plans to gain a large share in the Indonesian market by supplying four-wheel and two-wheel engine parts, transmission parts, etc.

The new joint venture is expected to start commercial production in February 2013 and will employ 120 people. Sales of around 1.8 billion Yen are anticipated by FY 2015.

www.global-sei.com

Edited by: Paul Whittaker, Editor ipmd.net, [email protected]   

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