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Thermax sets up US subsidiary

BS Correspondent

Thermax has announced the setting up of a wholly owned subsidiary company, Thermax Inc, in the US with an initial equity base of $500,000 to enable it to push exports.

The setting up of the subsidiary in the US is expected to substantially offset the falling sales graph of Thermax in the domestic market and give the energy and environment major a global exposure.

The subsidiary will act as the exclusive front-end value chain for all the major businesses and subsidiaries of Thermax and will develop and sustain markets in North and South America.

The move to set-up the US subsidiary comes close on the heels of Thermax recently acquiring the UK-based ME Engineering. In its first year of operation, ME Engineering has booked orders worth $7.5 million, the company has claimed.

Besides, the chemical division of Thermax has an office at Detroit, which will now be integrated with Thermax Inc.

The chemical division of Thermax exported $4.5 million to the US market alone last year.

Thermax Inc will be located in Detroit, USA and will start operations from April 2001 and will attempt to establish a distinct identity for Thermax as a multinational energy equipment, chemical and services company.

Thermax Inc will be headed by S S Shastri, business head, absorption and cooling business of Thermax.

"Thermax is already doing pretty well with absorption chillers in Europe and chemicals in the US. Our products are well accepted for their price, performance and service that Thermax offers. This new subsidiary will enable us to establish Thermax as a strong brand in the tough US market," Prakash Kulkarni, managing director of Thermax said.

Thermax's new export strategy will target major global players by offering quality solutions in energy and environment projects and the setting up of US subsidiary is expected to provide it the gateway for its products in the global markets.

The company plans to market and support its established range of products and services in the US: resins for water treatment and speciality applications, absorption chillers for air-conditioning and process cooling, cogeneration solutions, bio-mass fired boilers for niche markets, heat recovery units and engineering and consultancy services.

The US subsidiary will also nurture long-term partnerships with OEMs (original equipment manufacturers) in the US and strengthen technology sourcing and alliances for Thermax.

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