Released on Tuesday, July 10, 2007

Ashok Leyland, Chennai, India, has entered into a joint venture with the Alteams Group, Jyväskylä, Finland, to manufacture high pressure diecast aluminum products predominantly for the automotive and telecommunications markets.

The even-split joint venture will bring Ashok Leyland’s automotive focus together with Alteams’ diecasting abilities, which had until now primarily been devoted to the telecommunications sector.

“Apart from a fusion of the respective strengths of both the partners, the [joint venture] reflects the expansion of Ashok Leyland Group’s presence in the auto components sector to take advantage of rapidly growing opportunities both in India and abroad,” said R. Seshasayee, managing director, Ashok Leyland. “We are already present in the [metalcasting] business through Ennore Foundries. This [partnership] broadens our portfolio to meet the demand of castings from the automotive and telecommunications sectors.”

The partnership will begin production in 2007, and an investment of more than $43 million will be completed by 2008, according to a statement released by Ashok Leyland. In about 5-6 years, the companies expect the venture to achieve a turnover of $160.8 million with a total investment of $82.9 million and generate employment, directly and indirectly, in excess of 1,000.

The first manufacturing facility has been planned in Tamil Nadu, India, and will initially focus on telecommunications. It will only partly meet Ashok Leyland’s captive requirements for engine and gearbox components. The focus on automotive die castings will begin later.