Pune: Force Motors has announced that it will be acquiring Pithampur-based manufacturing plant of German commercial vehicle maker MAN Trucks. The amount has not yet been disclosed. It has been revealed by Force Motors in the regulatory filing that the proposal from MAN Trucks India to sell and transfer certain assets has been accepted by the board of Force Motors.
Apart from this, immovable and movable properties, as well as other intangible assets at its Pithampur plant, will also be sold and transfer to Force Motors. The regulatory filing also said that the arrangement is being recorded by binding agreements.
The arrangement would be subject to receipt of necessary approvals and it is expected that the actual transfer of the facility may happen by October end, Force Motors said.
A MAN Trucks India spokesperson said, “MAN Trucks India and Force Motors Ltd have entered into an agreement wherein Force Motors will acquire the Pithampur manufacturing facility of MAN. The agreement also entails continued employment for all MAN members at Pithampur.”
This development follows the announcement from MAN Trucks earlier in August to restructure its India operations, he added.
The company, however, declined to divulge any details of the agreement, including commercials, with Force Motors.
Earlier this month, the board of MAN Truck & Bus AG (MTB) had decided to restructure its India organisation as part of its global strategy to focus on premium segment markets.
As a result, MAN Trucks India would now become an R&D Centre for Excellence supporting global projects. The manufacturing, sales and exports of the CLA range of heavy commercial vehicles will be stopped after the existing customer orders are completed.
In July, the German company had announced putting on hold its ongoing projects, including new product launches and upgradation of models in the country to comply with the BS VI emission norms which come into effect from April 1, 2020.
Various products including tippers for off-road and construction, haulage for regular and over dimensional cargo as well as special application trucks like fire tenders, garbage compactors, concrete mixers, boom pumps, tip trailers and bulkers were manufactured by MAN Trucks at its Pithampur plant.
The company has sold over 25,000 trucks since it started India operations in 2006.