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Magna Powertrain and Amtek Establish a Joint Venture in India



12. July 2007

Magna Powertrain and Amtek Auto Limited signed a joint-venture for the manufacture of two-piece flexplate assemblies for automotive applications

Magna Powertrain, an operating unit of Canadian-based Magna International Inc., and Amtek Auto Limited signed a joint-venture agreement to establish a manufacturing facility outside Delhi, India, for two-piece flexplate assemblies for automotive applications. Manufacturing operations of the joint venture are expected to commence late in 2007. The joint venture will initially export flexplate assemblies entirely to European markets, with production to follow for the Indian market. Flexplate assemblies are used in automobiles with automatic transmission systems.
The 50/50 joint venture between Magna Powertrain and Amtek expands on Amtek’s existing relationship as a supplier of ring gears to Magna Powertrain’s North American operations. The joint venture represents a step forward in the expansion of Amtek’s customer base and product portfolio, as well as its technological capabilities, and is expected to enhance the competitive positions of both Amtek and Magna Powertrain.
Günther Apfalter, President, Magna Powertrain Europe and Asia stated: “For Magna Powertrain the joint venture is an important first step into the Indian market. Through the formation of an alliance with Amtek, Magna Powertrain can make use of Amtek’s special know-how in ring-gear manufacturing and will benefit from the competitive cost-level in India.”
Regarding the agreement, John Flintham, CEO World-wide operations of Amtek said: “This joint venture will be another milestone for the Amtek Group and a step forward in expanding its customer base and product portfolio, as well as attaining a technological and competitive edge in automotive component manufacturing.