Bharat Forge Ltd (BFL) has signed a joint venture contract with FAW Corporation for its forging business. The JV agreement was signed in Mumbai by Dong Chunbo, chairman, FAW Forging Ltd and board director of FAW Group, and B N Kalyani, chairman, Bharat Forge.

Bharat Forge will hold majority stake in the JV company.

FAW is the largest automotive group in China, with a leading position in both passenger car and commercial vehicle sectors and has extremely successful JV''s for car manufacturing with both Toyota and VW group with multiple plants in China. The forging company of the FAW group is the largest in China, and by joining hands with it, Bharat Forge will instantly become the largest forging company in China with a strong customer base across segments and covering numerous customers.

The JV company will be engaged in the manufacturing of wide range of highly engineered forged auto components for the commercial vehicle, passenger car and light truck market and will address both, the local Chinese manufacturers, the Chinese plants of global OEMs and also provide Bharat Forge a strong base from which to leverage its relationship with global OEM customers.

While announcing the signing of joint venture contract, Kalyani, said, "This joint venture is a step in the direction of reiterating our strong commitment to providing world class forging technology to the fastest-growing automotive market of the world — China. We will be able to fully support our customers across the world who have manufacturing plants in China through our chinese plant.

"I believe this joint venture between the two very accomplished partners — BFL and FAW Corporation would open up opportunities for growth by offering win-win solutions to the customers and take this relationship to a new height."

The JV Company will be established after obtaining the necessary regulatory approvals from the authorities in China.