Tata AutoComp Systems and Stadco, UK enter into JV agreement
February 9, 2005

Tata AutoComp Systems (TACO), part of the Tata Group, India and Stadco Ltd of the UK today signed a 50/50 joint venture, which will see Stadco's strong and proven expertise in the European car industry allied to TACO's manufacturing automotive component strengths in the highly skilled, low cost Indian environment.

The objective of the unique JV, to be known as TACO STADCO Automotive, is to offer a low cost 'offshore' body systems design and development resource for global component suppliers and vehicle makers, which will bring technology and knowledge to the Indian automotive industry.

Stadco is an acknowledged leader in body-in-white (BIW) - the basic sub-structure of the modern car body - engineering and manufacture. In 2004 it acquired the former Mayflower Vehicle Systems UK business, including its well- established product design and development capability. TACO has extensive involvement in the Indian automotive component sector, which includes stamping and BIW capabilities via its Automotive Stampings and Assemblies business, which supplies components to Tata Motors and other vehicle makers based in India. TACO also has three engineering centres, in partnership with Johnson Controls Incorporated, Faurecia and its own.

The first phase of the new JV will see the establishment of a product engineering centre in Pune, India, which will provide European technology and know-how to Indian vehicle makers seeking to develop new products and also offer a service design and development capability to European and US customers seeking to take advantage of low-cost design engineering services.

Further phases of the JV will build on these beginnings, initially offering the ability to manage programmes, both within and outside India, seeking a low cost tool development and manufacturing environment. In due course it is intended to provide a BIW manufacturing and assembly facility to service the Indian market, with potential for exports at a later stage.

D S Gupta, managing director, TACO said: "Modern, cost effective and high-strength BIW systems are core to the development of contemporary passenger vehicles and we are confident that the JV with Stadco will help us make real advances in these areas based on its worldwide knowledge. We are delighted to have been able to forge this JV and look forward to the considerable industrial benefits it would bring to TACO and its customers.

Andrew Morriss, managing director, STADCO, said: "Accessing the highly skilled, low cost base of the Indian motor industry is critical to the success of our customers. Therefore, we could look for no better partner than TACO, an integral member of the Tata Group. We believe that genuine benefits will flow to both parties in this JV and look forward to a long and mutually rewarding relationship".

Stadco
Stadco, part of the privately-owned Acertec Group, is one of the fastest growing players in the global market for body-in-white technology. Its acquisition in mid 2004 of the former Mayflower Vehicle Systems business doubled its turnover to more than €300 million and provided it with some of the most advanced press shop facilities and sub assembly operations in the industry. The company operates from eight sites in the UK and two in Germany, including a major presence at Ford's Saarlouis facility in Germany where it manufactures BIW assemblies for the new Focus model. Other major clients include BMW, Land Rover, Jaguar, Aston Martin and MG Rover.

Stadco Engineering which brings together the global resources and skills of both Stadco and MVS and has a tremendous track record, most recently proven in the mould-breaking body of the advanced Ford GT project (with its roots in the legendary Ford GT 40) and the Mercedes-Benz Accelo in Brazil. Based in Coventry, UK, Stadco Engineering gives the company newfound strengths in body engineering, enabling it to win new business calling on a ‘total solutions’ approach rather than merely being a supplier of body-in-white production and assembly expertise. More information at www.stadco.co.uk.