Electric motor parts maker EuroGroup Laminations enters India, signs JV in China (updated)

Eurogroup Laminations SpA

02/08/2024 11:39

(Recasts with deal in India)
       MILAN, Aug 2 (Reuters) - Italian electric motor
component maker EuroGroup Laminations  EGLA.MI  is buying a 40%
stake in India's Kumar Precision Stampings, the company said
shortly after announcing a preliminary agreement for a strategic
electric vehicle sector alliance in China.
    Milan-based EuroGroup Laminations (EGLA) - which specialises
in stators and rotors, two key components of electric motors and
generators - supplies manufacturers in the automotive and wider
industrial sectors.
    Its clients include Volkswagen  VOWG_p.DE , Renault
 RENA.PA , Ford  F.N , GM  GM.N  and a major undisclosed
U.S.-based maker of electric vehicles (EVs).
    EGLA said late on Thursday that it would invest a total of
19.9 million euros for the stake in Kumar, which also produces
stators and rotors for electric motors for a number of
industrial applications, allowing the Italian company to enter
the Indian market.
    As part of the deal, which is expected to complete by the
end of the year, EGLA will sign a shareholder agreement giving
it control over Kumar, it said.
    Just hours earlier, and following this week's visit to China
by Italian Prime Minister Giorgia Meloni, EGLA announced an
agreement with Chinese automotive component firm Hixih Rubber
Industry Group.
    Meloni spoke during her visit of the need for Italy to boost
cooperation with the world's second largest economy and get
trade on a more balanced footing.
    The new agreement aims to create an EGLA-controlled joint
venture, with the company saying it aimed to further stimulate
growth in the Chinese market in order to increase commercial
penetration, in particular with EV manufacturers.
    A new R&D centre for innovative technologies will be built
at Hixih Group's industrial base in the Shandong province, along
with a new high-tech industrial plant for the production of
motor cores for manufacturers of New Energy Vehicles.    
   EGLA already has two production facilities in China, one for
its EV & Automotive business unit and the other for its
industrial business unit. 

 (Reporting by Alessia Pé and Giulio Piovaccari, editing by
Keith Weir, Kirsten Donovan)
 ((giulio.piovaccari@thomsonreuters.com))