From correspondents in Tamil Nadu, India, 08:00 PM IST

City-based Carborundum Universal Ltd (CUMI), a leader in the abrasives and ceramics market, Friday said its Russian subsidiary Volzhsky Abrasive Works (VAW) will invest $50 million to build a new plant in that country.

VAW has signed a memorandum of understanding with the administration of Volgograd region in Russia, where the proposed plant will come up, CUMI chairman M.M. Murugappan told reporters here.

'The 100,000-tonne per annum plant will be built at an outlay of $50 million in phases. The capacity after the first phase will be 40,000 tonnes per annum,' Murugappan said.

VAW has a 65,000-tonne per annum plant in the region, which also houses the company's corporate office.

Last September, CUMI acquired 96 percent stake in VAW for $37 million.

CUMI managing director K. Srinivasan said the plant will require around 130 acres for the first phase.

VAW is expected to close this year with a turnover of $95 million.

(Staff Writer, © IANS)