Flowserve Corporation (FLS - Free Report) recently announced that it has completed a series of transactions in order to obtain full ownership of the Maraimalai Nagar manufacturing facility in Chennai, India. The facility was earlier jointly owned by Flowserve’s wholly owned subsidiary Audco India, Limited and Larsen & Turbo, Limited.
Recently, Larsen & Turbo acquired the entire stake in the joint venture Audco India, Limited, primarily to expand its valve business. Along with owning the Maraimalai Nagar manufacturing facility, Flowserve will also retain the key Serck AUDCO brand lubricated valve products and technology.
Flowserve believes that through this valve manufacturing facility, it will be able to establish a strong foothold in India by expanding into markets that were previously left untargeted. Further, the valve manufacturing facility at Chennai, also manufactures AUDCO SLIMSEAL butterfly valves and VOGT forged gate, globe and check valve products.
Apart from the broadened access to the Indian market, this transaction also provides the opportunity for long-term cost savings for other valve products through low-cost sourcing of engineering, planning and manufacturing.
Recently, Flowserve received an order to provide plug-and-ball valve products in order to meet customer needs for extensive mining applications. The $9 million order was awarded by a new nickel ore processing facility based in Long Harbour, Newfoundland, Canada.
Flowserve Corp. is one of the world’s leading providers of fluid motion and control products and services. Flowserve currently holds a Zacks Rank #3 (Hold) while some other important players in the same industry such as Ingersoll Rand Plc (IR - Free Report) and AECOM Technology Corporation (ACM - Free Report) both having a Zacks Rank #2 (Buy). Another company in the same industry Altra Holdings, Inc (AIMC - Free Report) has a Zacks #1 (Strong Buy).