Bharat Forge acquires US-based Federal Forge
27 June 2005
Chennai: Pune-based Bharat Forge Limited has acquired the US forging company, Federal Forge Inc, for $9.1 million.
Announcing the acquisition, chairman and managing director B N Kalyani, said, "The Federal Forge acquisition is a significant step towards implementing Bharat Forge''s strategy of expanding our global footprint and establishing a manufacturing presence in one of our largest markets the United States of America."
According to him, the strategy is to expand the company''s ''dual shore'', manufacturing base through strategically located complementary facilities, around the world. The first step was to establish ourselves in Europe, while the next step was to pursue North America and China.
The Federal Forge acquisition will enhance Bharat Forge''s presence in the US, giving it a strong foothold in the passenger car and light truck market. Established in 1962, Federal Forge is located in Lansing, Michigan, in the US. The company manufacturers a variety of forged automotive components such as control arms, links, steering knuckles, connecting rods, etc. The company''s annual turnover is about $60 million with a staff complement of 150 employees.