DAVID Brown has confirmed a multi-million pound deal with a leading Indian firm.
The Huddersfield engineering concern has signed up to a new company in India.
The joint venture company will be named David Brown Bharat Forge Gear Systems India Ltd and will serve the Indian heavy engineering industry.
It will supply both new build gearboxes and comprehensive aftermarket services to high growth, high demand sectors including power, mining, defence, wind, rail and steel.
The deal is between David Brown Systems India (Holdings) Limited, part of the David Brown Group, and Bharat Forge, a global leader in manufacturing automotive and non-automotive components, through its wholly owned subsidiary, BFIVL.
The shareholders agreement was signed in India by Mr Jim McColl, chairman of David Brown and Mr Subodh Tandale, director, BFIVL.
Exact details of the costs cannot be revealed until later as Bharat are listed on the Bombay Stock Exchange.
But a Brown spokesman confirmed it was a massive investment for the company and means good news for workers at the companys Park Works in Lockwood.
As the company becomes established there will be new contracts for all of the group and that includes Huddersfield.
It is also expected top bring a major jobs boost in India.
Bharat Forge already has a world-class manufacturing base in India and has a strong network of sales outlets both in Asian and across the world.
The spokesman said: Bharats proven track record in developing and growing joint ventures, coupled with David Browns long standing reputation for highly engineered gear manufacturing, means the joint venture will facilitate the growth of both partner companies.
Initially, David Brown Bharat Forge Gear Systems India Ltd is intended to be operational from current Bharat Forges facilities.
However, by the middle of 2012, it is intended to have a dedicated site for gear box assembly and testing.
There will also be two service centres in Bangalore and Kolkata by the end of 2011, and additional locations for more service centres in Delhi and Hyderabad are being planned by the end of 2013.
Mr McColl said: This is an extremely exciting development in David Browns growth strategy.
We recognise India is a high growth territory for gearing products and services and so we are delighted to have found such a well-respected and prominent partner in BFIVL.
This joint venture enables us to develop these high demand and growing industries by providing customer proximity through a local network.
Mr Baba N Kalyani, chairman and managing director, Bharat Forge said: We are proud to be associated with a highly respected global company like David Brown with its rich heritage and world class technology.
This is the first of our many steps to follow in the areas of providing high quality after-sales service to core-infrastructure areas.