Bharat Forge to get new facility at North Carolina
Bharat Forge America, Inc., the wholly owned subsidiary of Bharat Forge Limited is setting up a green-field forging and machining facility in North Carolina.
The modern facility will address the aluminium opportunity and have state of the art technology and processes. The 1st phase of the project involves approximately US$ 56 million capital investment. Bharat Forge mentioned in the statement that the investment is backed up by orders already secured from prestigious OEM’s and has been achieved by leveraging the company’s R&D capabilities.
As the order book ramps up in the years ahead, the company envisages enhancing the capacity through an investment of similar quantum in the coming years. The company has also mentioned that this investment is a key cornerstone of its strategy of enhancing its focus on lightweight materials and improving the financial parameters of the overseas operations. This will help to create a strong global manufacturing footprint as part of Bharat Forge’s aluminium strategy, spanning Europe, Asia and the United States.
The company plans to utilize full capacity of the plant by 2024. The construction of North Carolina unit is expected to get completed by the end of FY20. Also, the management plans to produce 3 lakh units of Class 8 trucks by end of FY20.
On Wednesday, stock of Bharat Forge had opened at Rs. 396.50 in BSE. In the morning trading session, it was trading up by 1.9 per cent to Rs. 404.45 from previous close of Rs. 397.05.