Release time : 2015-06-13 08:12:35
SC Rulmenti SA Barlad (Romania, a division of Kombassan Holding, Turkey) will build a bearing manufacturing facility in India.
Kombassan purchased Rulmenti Barlad, a former state-run bearing factory, from the Romanian Privatization Administration in June 2000. Rulmenti Barlad shares are unlisted but trade on the Bucharest exchange.
The company will reportedly invest up to USD $5 million in India, working through and owning 50% of the venture via URB Europe; the other 50% in the as-yet-unnamed company will be held by local investors in India.
Kombassan has been eager to expand its bearing manufacturing holdings, recently acquiring Hungary's MGM Bearing, renaming it New MGM Manufacturer Private Limited Company.
And through Rulmenti Barlad, it also had filed a plan to acquire up to 60% ownership of Kugel und Rollenlagerwerk Leipzig, a relationship which was vehemently denied by KRW.
The plant in India is being built in response to strong demand for KRS and URB brand bearings in that market; the strength of the overall bearing market in India; and to combat the growing problem of counterfeit URB bearings coming into India from China.
Another unique move approved by shareholders is that Rulmenti Barlad will convert an unused parcel of land in Romania. Partnering with a real estate developer, the property will be subdivided with houses and apartments built on spec. Rulmenti Barlad will own and then resell 25% of the apartments built.