Uni Abex in joint venture deal with Manoir Industries of France

Mumbai-based manufacturer of centrifugal and static casting in heat, wear and corrosion resistant alloys, Uni Abex Alloy Products Ltd, has tied up with French forging, foundry, hydroforming specialist Manoir Industries of France to make and market reformer tubes.

Manoir is the world's largest maker of centrifugally cast tubes and statistically cast products in heat-resistant alloys, with production volumes of over 6000 metric tonnes per annum of these products, which it supplies to the chemical, petrochemical and refinery markets.

Manoir operates five forging plants and six foundries, one each of which are located in France and China.

The two companies have agreed to form a joint venture with the French company holding a 60-per cent stake, which will use Manoir's marketing network to obtain manufacturing orders for reformer tubes for casting and fabrication to be made by Uni Abex at its plant at Thane on the outskirts of Mumbai.

Under the agreement Manoir will provide free technical assistance to the Indian company, which expects firm minimum orders through the joint venture that exceed its current turnover in this segment.

In the second phase commencing within three years, the JVC will set up its own fabrication shop with advanced technology and know how from Manoir and purchase cast tubes manufactured by Uni Abex under technical assistance from Manoir.

In the final phase the joint venture company will set up its own full-fledged casting facility.

Uni Abex will receive a €425,000 (approximately Rs2.46 crore) non-compete fee from the joint venture firm in two instalments, of €300,000 after the share capital of the new company has been subscribed and the remaining in the second phase.