Flowserve Strengthens Position in India by Obtaining Full Ownership of the Joint Venture´s Maraimalai Nagar Manufacturing Facility
DALLAS, March 28, 2013 - Flowserve Corporation (NYSE: FLS), a leading provider of flow control products and services for the global infrastructure markets, today announced the completion of a series of transactions related to the company's former Audco India, Limited (AIL) joint venture with Larsen & Toubro, Limited (L&T).
As a result of these transactions, Flowserve obtains full ownership of the joint venture's Maraimalai Nagar (MMNagar) manufacturing facility in Chennai, India, and retains the key Serck AUDCO brand lubricated valve products and technology. L&T will retain the remaining AIL entity and its other operations.
'Increasing our direct Indian exposure and guiding MMNagar's focus in the region make this transaction particularly appealing, and this approach is very much in line with our overall portfolio management strategy,' said Tom Pajonas, senior vice president and chief operating officer, Flowserve. 'We are pleased with the outcome and excited about the opportunity to grow the Flowserve business in the region by expanding our reach into markets and applications not previously targeted. In addition, we also plan to introduce new products for manufacture at the MMNagar facility, to fully maximize its capacity and promote greater localization of our valve portfolio.'
In addition to Serck AUDCO plug valves, the MMNagar facility also currently manufactures AUDCO SLIMSEAL butterfly valves and VOGT forged gate, globe and check valve products. Beyond expanded access to the Indian market, this transaction provides the opportunity for long-term cost savings for other valve products through low-cost sourcing of engineering, planning and manufacturing.
Investor Contact: Mike Mullin, director, investor relations, (972) 443-6636
Media Contact: Steve Boone, director, global communications and public affairs, (972) 443-6644
About Flowserve: Flowserve Corp. is one of the world's leading providers of fluid motion and control products and services. Operating in more than 55 countries, the company produces engineered and industrial pumps, seals and valves as well as a range of related flow management services. More information about Flowserve can be obtained by visiting the company's website at www.flowserve.com.
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Source: Flowserve Corporation via Thomson Reuters ONE