EuroGroup Laminations Expands into India and Forms JV in China
Italian electric motor component manufacturer EuroGroup Laminations (EGLA) has announced a strategic move into the Indian market by acquiring a 40% stake in Kumar Precision Stampings. This investment is part of a broader expansion strategy that also includes a new joint venture agreement in China.
EGLA, renowned for its expertise in producing stators and rotors critical components for electric motors and generators will invest 19.9 million euros in Kumar Precision Stampings. Kumar Precision is known for its production of similar components for various industrial applications. The acquisition, expected to be finalized by the end of the year, will grant EGLA control over Kumar through a shareholder agreement.
The announcement comes shortly after EGLA's strategic move in China, following Italian Prime Minister Giorgia Meloni's visit to the country. Meloni emphasized the importance of enhancing Italy's economic ties with China, the world’s second-largest economy.
EGLA has signed a preliminary agreement with Chinese automotive component manufacturer Hixih Rubber Industry Group to form a joint venture. The agreement aims to bolster EGLA’s presence in the Chinese market, particularly with electric vehicle (EV) manufacturers. As part of this deal, EGLA will establish a new research and development center for innovative technologies at Hixih's industrial base in Shandong province. Additionally, a high-tech industrial plant will be set up for the production of motor cores for New Energy Vehicles.
Currently, EGLA operates two production facilities in China: one for its EV & Automotive business unit and another for its industrial business unit. The new R&D center and production plant will further enhance the company's capabilities and commercial reach in the growing EV sector.
