Spicer India Ltd. announced groundbreaking on a hypoid gear manufacturing facility and testing center in Chakan, Pune, India. The joint venture company of Dana Holding Corporation, USA, and Anand Automotive Systems plans to expand services to the Indian automobile industry.

"Indian-based OEMs are demanding improved efficiency, power density, fuel economy, torque-carrying capacity and weight reduction," says James E. Sweetnam, president and CEO of Dana Holding Corporation. "In response, Dana has developed the AdvanTEK series of axles to meet these growing customer requirements, and we are pleased to announce that-with these new and expanded facilities-we will be positioned to manufacture these axles in India."

AdvanTEK axles comprise specially designed and manufactured hypoid gears with high power density. The 50,000-square-foot "greenfield" facility in Chakan, near Pune, is planned to produce 240,000 of these gear sets a year. At full capacity, the plant will employ around 130 people. Over the next few years, $35 million to $40 million will be invested in the facility, which is expected to open in late 2011.

"In the last few years, Indian OEMs have aimed at achieving world-class quality of vehicles manufactured here and meant for domestic and international markets," says Deepak Chopra, CEO of Anand Automotive Systems. "With this new gear plant, Spicer India will have contributed in its own way to help achieve this motive. This investment represents our ongoing commitment to the Indian automotive market."

B.D. Singh, chief operations officer of Spicer India, says, "The setting up of this new facility represents another important milestone in Spicer India's roadmap to growth. As leading OEM suppliers in the country, we are pleased to be in a position to keep pace with our customer requirements and in meeting market demands."