Steel Strips Wheels (SSWL) shares climbed over 3 per cent on Monday after it announced that the company has bagged order worth over 15 million euro to supply steel wheels to French automotive firm PSA Peugeot Citroen over a five-year period. This order is one of SSWL’s biggest export order in its history. Supplies would be for PSA’s upcoming new plant in Kenitra, Morocco and their existing plants Poissy, France & Vigo, Spain.
Shares of Steel Strips Wheels closed 3.07 per cent up at Rs 342. The scrip opened at Rs 338 and touched a high and low of Rs 350 and Rs 334.30, respectively. Sensex settled 371.16 points, or 1.46 per cent, down at 24,966.40.
This order marks SSWL’s entry into Flow forming technology for Passenger Car steel wheels as it includes development of 2 Ground wheels with this process. This should assist SSWL in developing light Steel wheels for other Global passenger car makers in future. Order also includes 2 carry forward mini spare wheels for new locations.
Total project volume would be approx 1.72 million wheels spread over 5 years generating cumulative revenue of about Euro 15 million. SSWL has been in strong business relationship with PSA since last 7 years and his new business only reflects their level of trust in SSWL’s capabilities. This business will help SSWL strengthen its position in the challenging EU Steel wheels market.