Kobe Steel buys out L&T Kobelco Machinery
Kobe Steel has bought all the shares of its Indian tyre and rubber machinery joint venture, L&T Kobelco Machinery (LTKM), making it a wholly owned subsidiary. LTKM manufactures, designs and sells rubber machinery used in tyre manufacturing.
Established in 2010, LTKM began as a joint venture with 51 per cent held by Larsen & Toubro and 49 per cent held by Kobe Steel. Kobe Steel and its Singapore subsidiary, Kobelco Machinery Asia, together now own 100 per cent of LTKM.
The business will now be renamed as Kobelco Industrial Machinery India (KIMI) in May. According to the company, demand for tyre and rubber machinery has been increasing in recent years based on rising production of cars in emerging markets, including India, which is experiencing 5 per cent or more growth per year, Kobe Steel said. The plan is for the new wholly owned subsidiary to take advantage of growing market demand in India as well as in Southeast Asia and Europe.