Steel Strips closed deal with Renault-Nissan at Rs. 225 crores

Thursday 16 February 2012, 11:01 AM by

Steel Strips Wheel Limited (SSWL), the automobile component manufacturer, has announced that Renault-Nissan has once again collaborated with them. Renault-Nissan has assigned a new project to SSWL, wherein the component manufacturer will be exporting parts to Renault-Nissan plant in Morocco.

According to the latest reports, this business deal between Renault-Nissan and Steel Strips Wheel Limited has been closed at Rs. 225 crores, which will span over a period of at least five years. SSWL would start supplying automobile components for the Moroccan facility by the third quarter of the next year, 2013.

Renault-Nissan declared SSWL as a single source supplier for its automobile company in Morocco. The automobile component manufacturer believes that working for Renault-Nissan in Morocco will give it a chance to serve the European customers as well.

Steel Strip Wheels Limited is also going to establish its own wheel manufacturing facility in Morocco. The company has taken approval from its board of directors and will set up its plant at Melloussa Jouamaa Free Zone that is in proximity to the Renault-Nissan’s manufacturing facility in Morocco.

Steel Strips closed deal with Renault-Nissan at Rs. 225 crores |
Steel Strips closed deal with Renault-Nissan at Rs. 225 crores

According to SSWL, its Moroccan plant will manufacture wheel rims for multi utility vehicles and passenger cars. The initial capacity of this facility will be approximately 2.5 million units on an annual basis. The company official revealed that the Moroccan facility will entail an initial investment of Rs. 186 crores, which is equivalent to Euro 28.64 million. The production capacity of this facility will be 5 million wheel rims per year.

About its plans, SSWL stated, “The plant is proposed to be located about 13 km from Renault-Nissan car manufacturing facility in Melloussa and 25 km from the Tangier sea port. It will also be very close to European markets of France, Spain and Italy, which together account for annual sales of 4.2 million cars.'' Steel Strips Wheel Limited has revealed that it has been in negotiation with PSA to start its business in Spain.

According to latest figures, the net sales recorded for January 2012 amounts to Rs. 82.3 crore, a relative growth of 43.1% from January 2011 that sums to Rs. 57.51 crores. With these figures, the gross sales of SSWL also rose to Rs. 90.13 crores during January 2012, marking a relative growth of 41.89% from Rs. 63.52 crores during January 2011. Moreover, the sales volume of the company which grew to 8.67 lacs in January 2012 from 8.55 lacs in January 2011 marked a relative growth of 1.40%.

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