Siemens Ltd, the public listed Indian arm of the German engineering conglomerate, said its board has approved a proposal to form a JV with Mitsubishi-Hitachi Metals Machinery, Inc and Mitsubishi Heavy Industries (MHI) for metals industry, as per a stock market disclosure.
As part of the JV, Siemens will transfer the Metals Technologies business of the company to a designated entity. It did not disclose terms of the transaction. German behemoth Siemens AG holds 75 per cent stake in Siemens Ltd.
This is a part of global deal and as per the agreement both partners are contributing their metallurgical industry activities to the joint venture.
In the JV, MHI will hold 51 per cent stake and rest 49 per cent will be held by Siemens. With about 9,000 employees, the venture will start operations in January 2015.
The JV will operate in the business of metallurgical industry as a provider of plant, products and services for the iron, steel and aluminium industry. It includes supply agreements for Siemens' industry automation and drive technologies divisions.
Siemens Industry's Metals Technologies Business Unit offers technology, modernisation, product and service portfolio and integrated automation and environmental solutions for complete plant life-cycles.
Japan-headquartered MHI manufactures heavy machinery. In 2000, the steel production machinery divisions of Mitsubishi Heavy Industries and Hitachi were combined to create Mitsubishi-Hitachi Metals Machinery, Inc.
(Edited by Joby Puthuparampil Johnson)