Amtek Auto Ltd. anticipates economies from merger.
News reports from India indicate that Ahmednagar Forgings Ltd (AFL) will be merged into its parent, Amtek Auto Ltd. (AAL). According to the reports, AFL has informed the Bombay Stock Exchange, where its stock has been traded, that its board of directors approved at a meeting held on July 31, 2008 a merger into AAL, which currently owns 52.6 percent of AFL stock.
AFL is based in Pune and manufactures automotive components. Some components are only forged, some are rough-machined, and others are fully machined. AFL’s product lineup includes piston assemblies for railway locomotives; crown wheels and pinions, rear-axle shafts, hub assemblies, and crankshafts for heavy and medium commercial vehicle applications, including farm equipment; and two-wheeler cranks, steering knuckles, connecting rods and caps, spiders, and gear shifter forks.
Along with AFL, Amtek Auto is merging other subsidiaries into itself, including Amtek India Ltd, Amtek Ring Gears Ltd, Amtek Crankshafts India Ltd., and Amtek Casting India Ltd.
With the mergers, AAL hopes to achieve combined annual sales of nearly $1.5 billion from operations spanning three continents.