Italian electric motor component maker EuroGroup Laminations (EGLA) announced significant expansions into the Indian and Chinese markets, marking a strategic move to strengthen its global presence in the electric vehicle (EV) sector. The company revealed it is acquiring a 40% stake in India's Kumar Precision Stampings shortly after announcing a preliminary agreement for a strategic alliance with China's Hixih Rubber Industry Group.
EGLA, headquartered in Milan, specializes in manufacturing stators and rotors, essential components of electric motors and generators, and supplies to major automotive and industrial manufacturers, including Volkswagen, Renault, Ford, GM, and a prominent U.S.-based EV maker.
The investment in Kumar Precision Stampings amounts to 19.9 million euros. Kumar, which also produces stators and rotors for various industrial applications, will provide EGLA with a significant foothold in the Indian market. The deal, expected to be finalized by year-end, includes a shareholder agreement granting EGLA control over Kumar, allowing for enhanced collaboration and integration.
This expansion follows Italian Prime Minister Giorgia Meloni's visit to China, where she emphasized the importance of balancing trade and boosting cooperation with the world's second-largest economy. In line with this, EGLA announced a joint venture with Hixih Rubber Industry Group aimed at stimulating growth in the Chinese market, particularly within the EV sector.
The joint venture will see the establishment of a new R&D center for innovative technologies at Hixih Group's industrial base in Shandong province. Additionally, a high-tech industrial plant will be built for producing motor cores for New Energy Vehicles. EGLA already operates two production facilities in China, catering to both its EV & Automotive and industrial business units.
"Our partnership with Kumar Precision Stampings marks a significant milestone in our strategy to expand our global footprint", said an EGLA spokesperson. "Simultaneously, our collaboration with Hixih Group in China will enable us to further penetrate the burgeoning EV market with cutting-edge technology and increased production capacity."