Sterling Tools Limited

Sterling Tools Limited, a leading automotive fastener manufacturer, has entered into a Memorandum of Understanding (MoU) with South Korea’s Yongin Electronics Co., Ltd. This strategic partnership aims to advance the production of electric vehicle (EV) and electronic components within India.

Here are the key details:

Partnership Overview:

Companies Involved: Sterling Tools Limited (BSE: 530759, NSE: STERTOOLS) and Yongin Electronics Co., Ltd.
Objective: Establish an EV component production facility in India.
Expected Business: The agreement is anticipated to generate INR 250 crore in business over the next 5 years.
Focus: Advancing India’s EV sector.

Facility Setup:

To enhance production capacity, Sterling Tools Limited will establish a new greenfield manufacturing facility in India.
Yongin Electronics, a major supplier of components to the Hyundai Kia Motor Group, will provide technological expertise to India’s EV sector through this collaboration.

Atma Nirbhar Bharat Vision:

The MoU aligns with the ‘Atma Nirbhar Bharat’ vision of the Indian government.
It aims to increase local value addition and backward integration into passive components.

Comprehensive Portfolio:

The partnership covers the entire portfolio of magnetic components required for various applications in India’s EV and electronics manufacturing growth.
Sterling Tools gains access to Yongin’s technology, enhancing its capability to provide solutions for EV and hybrid vehicles.

Quotes from Key Stakeholders:

Anish Agarwal, Director from Sterling Tools Limited, stated, “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 strengthening our presence and offerings as a provider of green energy solutions in the automotive industry.”
K. H. Kim, CEO of Yongin Electronics Co., Ltd, expressed, “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.”

About the Companies:

Yongin Electronics Co., Ltd: With 47 years of experience, Yongin specializes in electronic components such as transformers, AC/DC reactors, coils, chokes, EMI filter boards, DC Link EMI filters, high-current DC connectors, and metal ferrite cores. The company has played a significant role in the development of Korea’s electronics industry.

This collaboration represents a significant step toward strengthening India’s position in the global EV market and fostering innovation in the automotive sector. Sterling Tools and Yongin Electronics are poised to contribute to India’s sustainable and green energy future.

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