 |
 |
||||||
[June 2007]
CUMI Signs MoU for Acquisition of Volzhsky Abrasives Works, Russia
Carborundum Universal Ltd (CUMI) of India has entered into a binding Memorandum of Understanding (MoU) for the purchase of 84.14% of the ordinary shares of Volzhsky Abrasives Works located in the city of Volzhsky in Volgograd region, Russia.
Volzhsky Abrasive Works (VAW) is the largest producer of silicon carbide
(SiC) abrasives in Russia, with 65,000 tons per annum installed capacity. VAW also produces bonded abrasives and refractories. The company's sales in 2006 were about US$54 million.VAW management has been able to grow the company by maximising the SiC production as well as bringing in sound management practices. It was felt that to take VAW to its next growth phase clearly needed a strategic investor with interests in abrasives, grains and refractories. CUMI is one of the two companies globally with this range and was hence considered a logical choice.
CUMI is a fully vertically integrated company with operations in Australia, Canada, China, Middle East, USA and in India. CUMI brings to VAW its brands, market access, application engineering expertise and global management practices. This will help VAW to grow its bonded and refractory business as well as to move a part of the high volume SiC business to new value added micro abrasives.
CUMI is one of the flagship companies of the $2 billion Murugappa Group. The company has pioneered the manufacture of coated and bonded abrasives in India and has made forays into other material science areas such as ceramics (industrial ceramics, ceramic fibre refractory and bonded refractories) and electrominerals. CUMI is the largest company in the abrasives business in India.
www.murugappa.com
ENDS