- 17 Jan 2025
- ICICI Securities
AIA ENGINEERING WILL ESTABLISH HI CHROME MEDIA MANUFACTURING FACILITIES IN CHINA AND GHANA
News: AIA Engineering will establish Hi Chrome media manufacturing facilities in China and Ghana under VEGA Industries (Middle East) FZC, UAE (VEGA ME). Each facility will require ~₹430 crore investment over the next 3 years and will have a capacity of 50,000 metric tonnes per annum. The company has informed that VEGA ME is also evaluating Indonesia and other geographic locations for setting up similar manufacturing facilities.
Views: AIA engineering has an existing capacity of 4.6 lakh tonnes per annum and is undergoing a 36,000 ton expansion. Which was earlier planned at 80,000 tonnes but brought down to 36000 tonnes due to supply chain constraints after war began in the Middle East. The rationale for the decision is to mitigate logistics and supply chain constraints leading to improved market access, better product availability and reduced costs for VEGA ME's customers.
Impact: Positive