Walter AG in Tübingen, Germany, and Vargus Ltd., headquartered in Nahariya, Israel, have established a joint venture named VWR Cutting Tools S.R.L. The two precision-tool manufacturers hold equal shares in the new business. The joint production company will manufacture tool holders and be located at the Vargus production site in Bucharest, Romania.
Walter and Vargus signed the contract for the joint venture on Feb. 26, 2021, and is expected to start production in November 2021 with 20 employees.
Richard Harris, president of Walter, said, "The joint venture in Romania is a further investment in the globalization and growth of our company. With Vargus, we have a strong partner and specialist for tools at our side."
Vargus Ltd has been operating its manufacturing plant in Romania since 2017. The planned expansion of the plant will produce tool holders for Vargus and for Walter for the European and U.S. markets. For the North American market, the plant will also produce grooving tools.
"We have been working with Walter in a trusted relationship for over 20 years. With the joint venture, we are taking another step together to position ourselves optimally for the future," said Harry Ehrenberg, president of Vargus Ltd.
Related Glossary Terms
Machining grooves and shallow channels. Example: grooving ball-bearing raceways. Typically performed by tools that are capable of light cuts at high feed rates. Imparts high-quality finish.