Amtek Auto Ltd has acquired one of the largest automotive precision machining companies in the UK, the Triplex- Ketlon Group, which was one of Amtek''''s strongest competitors running close to 185 different machining lines and a multi-location presence in the UK. Triplex-Ketlon''''s manufacturing facilities are located in Paddock Wood, Stratford-upon-Avon and Hereford all in UK.

At sales revenue of $152 million per annum, Triplex-Ketlon was one of UK''''s large but independent precision machining companies. This acquisition will consolidates the position of the Indian components maker in Europe''''s automotive sector and makes Amtek''''s combined precision machining operations the largest in the UK and probably one of the largest in Europe as well.

This acquisition is an expansion for Amtek''''s precision machining operations, which currently comprises two large precision machining facilities in Coventry and Letchworth in the UK besides their machining operations in India and Germany.

Triplex-Ketlon is regarded as a dominant player in Europe''''s strong automotive industry with a very strong customer base that includes Perkins, Land Rover, Honda UK, Ford, TRW, JCB, Toyota UK, Dana Spicer, Honeywell among others.

The Triplex-Ketlon acquisition provides Amtek an entry into a very high growth sector dominated by Japanese OEMs like Toyota and Honda in Europe, besides getting Amtek into high value gear manufacturing in Europe.

The main products of this company include ladder frames, engine and transmission covers, steering knuckles, flywheel assemblies, exhaust and intake manifolds, wheel hubs and flanges, brake discs, pulleys, piston, hydraulic actuators, gear box housings and gears, shafts and sprockets.

Triplex-Ketlon is a profitable business and has long-term business relationships with customers, all of whom are long-term customers.

The combined operations of Amtek would double to over $650 million per annum in the UK alone. Along with the German machining operations at Zelter and the Midwest Manufacturing in the US, the combined sales revenue of the Amtek overseas operations increases to about $770 million.

Amtek targets its overseas sales revenue to cross $1.0 billion within next two years.
Amtek has drawn up an integration plan for this acquisition which will bring in considerable cost savings due to variable and fixed cost synergies, besides providing Amtek and entry into new customers like Honda and Toyota in the UK as also some non automotive customers.

This also increases the scope and possibility of additional highly profitable outsourcing opportunities worth $100 million for Amtek''''s forging and iron casting and aluminium die-casting operations in India. This is in line with Amtek''''s strategy of expanding its forging, iron and aluminium casting capacities in India over the last two years at a cost of over Rs500 crore for meeting the captive demand for forgings and castings of Amtek''''s overseas operations.