TI Diamond Chain's JV with Borg Warner

By Our Corporate Reporter

CHENNAI, AUG. 2. TI Diamond Chain, part of the Chennai-based Murugappa group, has entered into a joint venture with Borg Warner Morse Tec of the U.S. for the manufacture of world class silent chains and associated systems. Borg Warner is a global leader in the design and manufacture of automotive chain systems and components for engine timing, automatic transmission a-nd four-wheel drive applications.

According to Mr. V.A. Raghu, managing director, Tube Investments, these new generation silent chains will provide value added products to the market. With the move to have all vehicles conform to Euro II emission norms, there has been a shift from the traditional 2-stroke engines to 4-stroke engines. The joint venture project will cater to the requirements of chains for the 4-storke engines.

Mr. M.A. Alagappan, Vice-Chairman and director (Strategy) of the Murugappa group, has expressed optimism that the joint venture will bring in world-class cutting edge technology in the power transmission business to India.

Mr. A.R. Rao, Vice President, TI Diamond Chain, told this correspondent that the equity investment in the venture would be Rs. 5.50 crores. Borg Warner will hold 74 per cent. The balance 26 per cent will be held by TI Diamond Chain.

The facilities, coming up near the existing project of TI Diamond Chain at Kakkalur near here, will be an export-oriented unit catering to the needs of Borg Warner. Commercial production, according to Mr. Rao, is expected by the end of this year.

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