to establish manufacturing in india

Quickstep to establish manufacturing in India
10:26, Tuesday, 13 June 2006

Sydney - Tuesday - June 13: (RWE Aust Business News) - Quickstep
Holdings Ltd (ASX:QHL) intends to establish a low-cost manufacturing
centre in India.
In conjunction with an Indian composites component manufacturer
and a Japanese supplier, Quickstep has reached an in-principle agreement
to form a joint venture using its proprietary technology and equipment.
The joint venture partners have identified and are now bidding on
specific manufacturing opportunities in India and Australia.
There is an immediate multi-million dollar opportunity in India's
rapidly growing mass transit and infrastructure sectors relating to the
manufacture and supply of interior panels for rail coaches
made from advanced composite materials, Quickstep said.
Success in obtaining contracts will see the establishment of a
Quickstep manufacturing facility in New Delhi.
Quickstep will be submitting a bid on an Australian contract by
the end of July 2006.
The joint venture is with New Delhi-based NTF (India) Private Ltd
and Japanese-based Avanti Corp.
Quickstep will have at least a 44 per cent ownership stake.
The parties will fund the joint venture in accordance with their
ownership entitlements.
NTF will manage the joint venture on a day to day basis. The
structure of the Joint Venture and associated agreements are now being
formalised.
This joint venture is specifically for the manufacture of railcar
interiors and exteriors.
Expansion beyond this market focus will be subject to negotiation
amongst the parties.
Quickstep will supply an initial Quickstep QS20 production
machine by October 31 2006.
It will also complete further test work in Perth on sample parts
and provide technicians to manage commissioning of the Indian facility by
November 30.
NTF has already built tooling required to manufacture sample
parts and will provide staff for the facility, which will include both
existing NTF employees as well as additional local labour.
Quickstep shares were steady at 22c.