AJANGIZ, SPAIN (Jan. 18, 12:20 p.m. ET) — Spanish automotive parts maker Maier Ltda. has signed a partnership deal with the Indian industrial firm UM Group, creating a joint production company in India.
Under the agreement, the Basque Country plastics processor will create a jointly owned business named Alpha Maier.
The joint venture will invest more than 5 million euros to supply decorated plastic assemblies and parts to the automotive sector in India. Already, the enterprise has projects to start supplying Maruti Suzuki, one of the biggest car builders in the sub continent, according to Maier.
Alpha Maier aims to win further supply contracts from other global vehicle manufacturers such as General Motors, Honda, Peugeot-Citroen and Nissan with whom Maier does business in Europe.
This year, the new venture intends to create around 90 jobs and expects to achieve sales worth more than 4 million euros.
Maier's project is the second such Asian alliance announced by a subsidiary cooperative of the Mondragon group in the past six months. Last Autumn, Citautxo, which designs and makes plastic and rubber car parts and assemblies, agreed to take a 50 percent stake in the Pune business of Indian pipe and hose producer Taurus Flexibles of Jharkhand
The automotive division of UM Group, which is a diversified industrial business, makes a range of products such as car rear-view mirrors, horns and instruments with printed circuit boards. The Indian group also serves other sectors such as energy and equipment for electricity distribution.
Maier, an injection molder and mold maker, is based in Ajangiz in the Basque Country and already operates five production plants. These include units in northern Spain in Gernika; in Iraizotz-Ultzama in the Navarre region; Maier Ferroplast near Vigo; at Attwood in the English West Midlands and in Prostejov in the Czech Republic. Maier has other strategic alliances in Turkey and Japan.
Its products include interior and exterior components such as front grilles, wheel covers, dashboard fascias, handles and trim. It also makes parts for domestic appliances.
Maier also has a technology center in Ajangiz, where it specializes in developing plastics technologies for the automotive sector. In 2011 Maier expected to achieve sales of 210 million euros.
Maier is a unit of Corporación Mondragon.