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Drive Systems Segment to build third plant in India

Start of production planned for beginning of 2015

Pfäffikon SZ, Switzerland / Rivoli, Italy / Delhi, India – September 18, 2013 – Oerlikon’s Drive Systems Segment is building a third Indian plant in Sanand in the state of Gujarat, a hub for the automotive industry. The Segment, which markets products under the Oerlikon Graziano and Oerlikon Fairfield brands, laid the foundation stone a few days ago. “This marks an important milestone for the Group’s further development in India and is a clear signal that we continue to execute the Group’s growth strategy in which regional expansion plays an important role”, said Oerlikon Group CEO Jürg Fedier.

Oerlikon’s Drive Systems Segment has been present in India since 1999, and as of the beginning of this year the Segment CEO has been based in Delhi. The Segment operates an Oerlikon Graziano production site in Greater Noida and an Oerlikon Fairfield site in Belgaum. At present 60 % of the Segment’s Indian revenues are from domestic market sales and 40 % are from export sales in the agricultural, construction equipment, commercial/utility vehicle and industrial applications markets. India is of increasing importance to the Drive Systems segment as both a market and manufacturing base. “Although the Indian economy has slowed down in relative terms, absolute growth is encouraging and we are confident that this market holds tremendous potential for our business”, said Heriberto Diarte, CEO of the Drive Systems Segment. He added: “Our Indian operations will likely account for some 20 % of our Segment turnover and employ half of our total workforce once this third plant is fully operational.”

Sanand is an established hub for automotive companies and is replete with specialized prototyping and assembly engineering talent. The new plant will allow Drive Systems to deliver high-tech products and solutions at competitive cost by leveraging local talent for local markets in an area where most current and prospective customers are based.

The new Gujarat plant will produce transmission synchronizers, for which India is already recognized as an international competence center, and assemblies for full and final transmissions for high-end trucks, off-road applications and passenger cars. The new plant will be spread across some 30 acres and create almost 500 new jobs. The facility will also showcase Oerlikon’s commitment to environmental sustainability with high energy efficiency and efficient waste water management.

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