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Sterling Tools signs MoU with South Korea's Yongin for EV Components Facility, Eyes Rs. 250 Crore Revenue by FY30

Posted On : 2024-04-19 23:13:22( TIMEZONE : IST )

Sterling Tools signs MoU with South Korea's Yongin for EV Components Facility, Eyes Rs. 250 Crore Revenue by FY30

Sterling Tools Limited (BSE: 530759) (NSE: STERTOOLS), the second largest automotive fastener manufacturer and, through its subsidiary, the leading manufacturer of Motor Control Units (MCUs) in India, has signed a Memorandum of Understanding (MoU) with South Korea's, Yongin Electronics Co., Ltd, a major supplier of components to the Hyundai Kia Motor Group.

This strategic agreement, expected to generate Rs. 250 crore in business over the next 5 years, marks a crucial step in advancing the production of electric vehicle (EV) and electronic components within India. To accelerate the production capacity, Sterling Tools Limited will set up a new greenfield manufacturing facility in the country.

As a key supplier of components, Yongin Electronics Co., Ltd offers its technological expertise to the India's growing EV sector. This association strengthens Sterling's EV component portfolio by increasing local value addition and backward integration into passive components, in line with the 'Atma Nirbhar Bharat' vision of the Government of India.

The MoU enhances Sterling's capability to provide solutions for EV & Hybrid space, as well as other automotive applications, incorporating the latest technology from Yongin. This collaboration between Sterling and Yongin covers the entire portfolio of magnetic components required for various applications in India's EV and electronics manufacturing growth.

Commenting of this new association, Anish Agarwal, Director from Sterling Tools Limited, said, "This MoU demonstrates Sterling's commitment to developing the EV and Electronics ecosystem and contributing to "Make In India". We are one step closer to our goal of strengthening our presence and offerings as a provider of green energy solutions in the automotive industry."

K. H. Kim, CEO from Yongin Electronics Co., Ltd said, "We recognize the significant potential within the Indian EV market. It brings us great pleasure to announce our partnership with Sterling through the signing of an MOU. We are prepared to embark on a journey of mutual growth and collaboration within the Indian EV industry, contributing positively to its advancement."

Yongin is the leading manufacturer for Electronic Components like Transformers, AC/DC Reactor, Coil & Choke, EMI Filter board, DC Link EMI Filter, High Current DC Connector and Metal Ferrite Cores and has participated in the development of Korea's electronics industry over the past 47 years.

As the automotive landscape continues to evolve, the signing of this MoU positions Sterling Group to spearhead the transition towards a sustainable and technologically advanced future in the automotive industry.

Shares of Sterling Tools Limited was last trading in BSE at Rs. 361.05 as compared to the previous close of Rs. 365.45. The total number of shares traded during the day was 18736 in over 1142 trades.

The stock hit an intraday high of Rs. 366.00 and intraday low of 355.80. The net turnover during the day was Rs. 6780616.00.

Source : Equity Bulls


SterlingTools INE334A01023 MoU YonginElectronics