Delhi-based auto component maker Amtek Auto Limited has announced that it has signed a joint venture agreement with Japan-based Sumitomo Metal Industries for production and sale of forged crankshafts for automotive applications in India.

In a disclosure to the Bombay Stock Exchange, Amtek Auto said that in the new joint venture firm, Amtek, Sumitomo Metal Industries and Sumitomo Corporation would invest 50 per cent, 40 per cent and 10 per cent respectively.

It is believed that the joint venture would enhance Amtek's product portfolio and also offer an opportunity to Sumitomo Metal to enter the high growth crankshaft market of India.  

Amtek is a large automotive component and sub-assembly manufacturer with manufacturing operations spread across India, Germany, UK and USA.

On the other hand, Sumitomo Corporation is the global partner of crankshaft business of Sumitomo Metal.  

Shares of the company gained 20.1% to trade at Rs 152 on the BSE (at 12:26 p.m.).