Tadir-Gan (Precision Products) Ltd. (TASE: TDGN) unit Ortal has set up a joint venture with a company in Turkey to produce and market zinc products.
The Tadir Gan subsidiary, a joint venture with Turkish company Ruba Fermuar San AS, is called Ortal Dokum SAnayi ve Ticaret Anonim (Ortal Turkey). Tadir Gan unit Ortal and Ruba each own equal stakes in the venture.
Ortal Turkey will serve as the marketing arm for Tadir Gan's zinc products. As part of the deal, Tadir Gan will transfer production lines for zinc products to Ruba, for no consideration. Ruba committed to setting up a manufacturing facility and using the lines in it to produce and sell zinc products exclusively to Ortal Turkey, or customers named by Ortal Turkey.
The joint venture is part of a gradual process to develop new markets, as well as cutting production costs by taking advantage of lower costs in Turkey.
Tadir Gan unit Ortal specializes in the manufacture of zinc and magnesium die-casting parts.
Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2010
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