Cumi in pact to set up $50 m SiC fusion plant

Written by Corporate Bureau | Updated: Nov 29 2008, 08:02am hrs
Carborundum Universal Ltd (Cumi), a constituent of the Chennai-based Murugappa Group, on Friday has signed a memorandum of understanding (MoU) with the Administration of the Volgograd Region, Russia represented by first deputy governor YI Sizov for setting up a 100 thousand tonnes SiC fusion plant at a cost of about $50 million through its subsidiary Volzhsky Abrasive Works, Volgograd Region, Russia.

The new plant would use environment friendly fusion technology and will have high energy efficiency. Volgograd Region would support this project by way of arranging power supply, raw material supply and suitable land. This project is expected to be implemented in phases which would provide direct and indirect employment of over 500 people in the egion.

K Srinivasan, managing director, Cumi said the company would fund the project through a mix of internal accruels and debt.

However, the management has not yet finalised the financial structuring of the project. The new plant would give Cumi a ready access to the raw materials for its various lines of production. The plant is expected to go on strean from 18 months of signing the MoU.

Cumi acquired Volzhsky Abrasive Works, Volgograd in September 2007. Cumi operates 18 plants in India and six plant abroad. With the new plant, the company would become one of the largest producers of silicon carbide and bonded abrasives in the world.

Cumi has its major manufacturing units in India, Russia, and China and has presense in Australia, Canada, Middle East, the US, Thailand and South Africa.