The Hindu Business Line : CUMI to have production base in Europe

CARBORUNDUM Universal Ltd (CUMI), the flagship company of the Murugappa group, will set up a manufacturing base in Europe, after completion of the project in China in 2005-06.

For Europe, the location has not yet been selected, while that for China could be the east coast region.

The company currently services its European clients partly through Wendt GmbH of Germany and partly directly. It will cater to the automobile ancillary, fabrication and engineering units with their range of abrasives products, both in China and Europe.

Mr M.M. Murugappan, Chairman of CUMI, told Business Line here on Wednesday that the possible location for the unit in China would in the eastern coastal region of the mainland.

"We are likely to go alone as the revised rules in China do not insist anymore on a joint venture with a local partner," Mr Murugappan observed.

The coastal region would be preferred as import of electro-minerals would be required as inputs, he indicated.

Though availability of bauxite, the primary raw material for electro-minerals required for industrial abrasives, in China is not a problem, India is a better source for ores with high alumina content.

"We have to keep import of raw materials in the picture for locating the plant", he added.

For its Dubai foray, the company is focusing on the construction and the fabrication industries.

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