Nipman Fastener, Korea's IL-Ryung ink pact on auto components

NEW DELHI:Auto components maker Nipman Fastener Industries has entered into a technical tie-up with South Korea's IL-Ryung Co to manufacture steering components and sub-assemblies at an investment of about USD 35 million (over Rs 220 crore).

The manufacturing facility to produce components will initially be in NCR region and may be expanded later to serve the prospective customers better, Nipman Fastener Industries said in a statement.

Production under the new collaboration is expected to start in the last quarter of the current financial year and the project, once completed, will have a potential to generate a business of about Rs 350-400 crore, it added.

Nipman, which makes standard as well as specialised fasteners, studs and other cold forged components for engines, has four manufacturing plants.

IL-Ryung is an over 50-year old company supplying variety of components and sub-assemblies for four wheelers. Its turnover during the previous year amounted to USD 87 million.

It has state-of-the-art facilities and has been a preferred supplier for global requirements of number of OEMs like, Hyundai, Kia Motors, SsangYong Motors, General Motors etc.