DOWA Thermotech Co. Ltd. entered into an agreement with Hightemp
Furnaces Ltd. (HTF) to acquire shares in HTF, which is the largest
heat-treatment and industrial furnace manufacturer in India. The share
acquisition date is scheduled for the end of September, with DOWA Thermotech
acquiring up to 80% of shares outstanding in HTF at that time. HTF, which operates
five plants in India, has maintained a relationship with the DOWA Group for
over 20 years, including the licensing of technology in 1985 and capital participation
in 1991. The heat-treatment market is expected to grow significantly in India in
association with the expansion of automobile production.
After acquiring the controlling interest, the DOWA Group
will establish a firm position in the expanding Indian market by adding DOWA
Thermotech’s manufacturing technologies and its network of Japanese customers
to HTF’s business base. The group will also seek to meet demand from DOWA
Thermotech’s Japanese customers for advancement and business expansion in India
by enhancing the lineup of batch furnaces and introducing new manufacturing
technologies, such as continuous furnaces, from Japan, in addition to the
existing licensing of technologies.
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