Indian injection press maker Larsen & Toubro Ltd. has bought out joint venture partner Sumitomo (SHI) Demag Plastics Machinery GmbH from their manufacturing operation in Chennai, India, industry sources said.
The purchase gives L&T complete ownership of the factory, which makes injection molding machines, and ends a partnership that began in 2001 when Mumbai-based L&T and Schwaig, Germany-based Demag Plastics Group launched the joint venture, known as L&T Demag Plastic Machinery Ltd.
Sumitomo Heavy Industries Ltd. in Chiba City, Japan, inherited the operation when it bought Demag in 2008.
Neither L&T nor Sumitomo had immediate comment about the deal or its effect on each company's plans in India.
Sumitomo has had a technical collaboration with another Indian press maker, publicly traded Windsor Machines Ltd. in Mumbai, for more than 10 years, according to Windsor's Web site.
Industry sources said L&T and Sumitomo Demag have been telling customers since April that Sumitomo has sold its stake, but the companies did not publicly announce the change.
In 2005, L&T Demag built a second factory in Chennai that doubled its production capacity to 600 machines a year. Last year the firm launched a petition to India's government accusing Chinese rivals of dumping presses at below cost in the Indian market. The government responded earlier this year by imposing duties of up to 223 percent on Chinese-made machines.
L&T is a $7 billion firm with diverse holdings in engineering and construction, and one of India's largest private firms.