Uni Abex - Singing of Joint Venture Agreement with Manoir Industries, France

Uni Abex Alloy Products Ltd has informed that the Company on February 08, 2008 has executed an Agreement for Joint Venture with Manoir Industries of France in relation to the marketing and manufacture of Reformer Tubes.

Manoir Industries, France, is a manufacturing Company with a broad capability in specific sectors of Chemical, Petrochemical and Refinery markets and operates 6 foundries and 5 forging plants throughout the world. Two of these foundries — Pitres located in France and Yantai in China produce more than 6000 metric tonnes per annum of centrifugally cast tubes and statistically cast products in heat-resistant alloys, which makes Manoir Industries, the world's largest producer of these products.

In initial stage, Phase-I, JVC with marketing experience and network of Manoir will be marketing Reformer Tubes and Uni Abex Alloy Products Ltd. (Uni Abex) will be involved in the manufacturing activities with free technical assistance for Manoir (only reimbursing of expenses for their technical personnel) relating to Casting and Fabrication work for the same, for which Uni Abex will get firm orders from JVC of a minimum volume, which will be larger than the existing turnover of Uni Abex in this line of business.

In Phase-II which should commence within a period of three years, JVC will set up its own fabrication shop with advanced technology and knowhow of Manoir and purchase cast tubes from Uni Abex manufactured with technical assistance provided by Manoir.

In Phase-III after successful implementation of Phase-II resulting in reasonable profitability and positive cash flow JVC will set up a full fledged Casting facility.

The share capital of JVC will be subscribed for upto 40% by Neterwala Group of Companies including Uni Abex (20%) and Manoir Industries 60%. In order that Uni Abex does not compete with the JVC product portfolio and incidental thereto, Uni Abex will receive from the JVC the rupee equivalent of Euro 4,25,000 (Rs 2.46 crores at the present rate of exchange) in two instalments, viz, rupee equivalent of Euro 3,00,000 within a period of fiteeen days from the date of respective capital contribution in the JVC and of Euro 1,25,000, upon commencement of Phase II or on expiry of three years whichever is earlier.