DANISH STEEL FACTORY IN BANGALORE
In 2003 three small Danish steel companies, facing increasing competition, established a joint steel component production company –Danish Steel Cluster – in India. The companies, Brd. Jensens Maskinfabrik, Rool Maskinfabrik and EC Maskinfabrik, supply components for e.g. wind turbines and office furniture. They approached The Industrialisation Fund for Developing Countries (IFU) which, together with the Trade Council of Denmark in India, identified local partners and made contact with Indian authorities. “None of us had any experience with production outside Denmark,” says Lars Jensen, chairman of Danish Steel Cluster. “So IFU and the Trade Council of Denmark made major efforts to get contact established.
The production of steel components started in February 2005, when Danish Steel Cluster opened its newly built production facilities in Bangalore. The collaboration in India has progressed, and Danish Steel Cluster has invested further in new production machinery. Production is estimated to be as much as 50% cheaper in India than in Denmark. The Danish companies expect nonetheless that outsourcing to India will create new jobs in Denmark through specialisation of the Danish part of the production.
The bulk of the Indian production is exported to western Europe, but it is planned to develop market opportunities in India.
IFU has 47% of the share capital in Danish Steel Cluster and is also represented on the board of directors.
This page forms part of the publication 'FOCUS DENMARK' as chapter 6 of 22
Version 1. 09-06-2006
Publication may be found at the address http://www.netpublikationer.dk/um/6565/index.htm