Setco Automotive Ltd (Setco) and Lingotes Especiales S.A. (Lingotes) have announced the formation of a 30 million Euros joint venture over 3 years called Lava Cast Pvt Ltd, focused on developing and manufacturing fully machined ferrous casting products for the automotive & other industries. Lava Cast Pvt Ltd (The JV Co.) will have equity participation by both companies. As part of this agreement, Lingotes Especiales will come on board of Lava Cast as the Technology Partner.

"The World class Lava Cast foundry is the next step in our vision which will make Setco Automotive the preferred OEM supplier/ partner globally. In Lingotes, we found a strategic partner to help us achieve this vision. Bringing over 40 years of experience in the foundry industry and key OEM clients; Lingotes will help us to extend our reach into new customer bases and to build our collective product portfolio in the coming years. The Indian foundry market currently holds great promise and has the potential to emerge as a key global export hub. We are looking to create a niche for ourselves in this market with a world class fully machined casting set up, which will add tremendous value. With the support of Lingotes Especiales, Lava Cast is confident of becoming a reliable company meeting global quality standards. Setco will also off take the castings for its own captive consumption" said Harish Sheth, Chairman & Managing Director, Setco Automotive.

Vincent Garrido, Chairman Lingotes Especiales said, "Setco has a strong presence in India in the clutch business. They enjoy excellent relationships in the sector, and have a strong understanding of manufacturing. With them, we are confident of creating a reliable supply base of castings for the international market. Geographically they are located in the power surplus state of Gujarat, which has access to good ports as well as a good workman culture. We are excited to extend our 4 decades of manufacturing experience into India. Our long-standing experience in this sector, will substantially reduce the uptime of this new project."