Wednesday, February 29, 2012

FAW on state recce

Calcutta, Feb. 28: Chinese automotive casting maker FAW (First Automotive Works) Foundry Company is planning to partner local companies for business opportunities in India. A company delegation today met state government officials in a "fact-finding mission" to explore investment chances in Bengal.

"There was a meeting with them (company delegates) where we appraised them of the advantages they could avail in the state," Somesh Bhattacharya, special secretary to the department of commerce and industries of the Bengal government, told The Telegraph.

He added that the state government could provide all necessary support to them in terms of water, minerals and alloys and other necessary raw materials required for a casting unit.

Sun Feng, president of FAW Foundry, said the company was interested to know the nature of the automotive casting sector in India and would like to partner a local company.

He is leading a delegation of seven members who will participate in a global foundry meet in Bangalore. They are also planning to visit Tata Motors' Pune plant.

Based in Changchun, FAW Foundry is a part of FAW Group, which is the largest auto maker in China.

"They were looking for joint venture partners. We have informed them that they could take advantage of the 100 per cent FDI that is allowed in this sector," said Ashok Aikat, president of the Bharat Chamber of Commerce. The delegates were also appraised by the chamber of the existence of a major foundry belt in Howrah.

Aikat said the company could look at SAIL, Hindustan Motor or locomotive manufacturing units as potential customers.

In 2009, FAW entered into an agreement with India-Russian joint venture Ural India to set up a manufacturing unit for trucks and buses. The project is yet to gain momentum.

It is the Chinese firm's second attempt to explore business opportunities in Bengal and the first under the new government.


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