Walter, Vargus Partner on Toolholding Manufacturing Venture in Romania
Production at VWR Cutting Tools is expected to begin in November 2021 with approximately 20 employees.
Walter AG, headquartered 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 each hold equal shares in the new business. The joint production company will manufacture toolholders at the Vargus production site in Bucharest, Romania.
Walter and Vargus signed the contract for the joint venture Feb. 26, 2021 and production is expected to begin in November 2021 with some 20 employees.
“The joint venture in Romania is a further investment in the globalization and growth of our company,” says Richard Harris, president of Walter. “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 this plant will exclusively produce toolholders for the joint venture. The purpose of the new company VWR Cutting Tools S.R.L. is to improve the overall supply chain of these products in Europe and U.S. For the North American market, this will include production of grooving tools.
“We have been working with Walter in a trusted relationship for over 20 years,” says Harry Ehrenberg, president of Vargus Ltd. “With the joint venture, we are taking another step together to position ourselves optimally for the future.”
Walter has been in the metalworking industry for over 100 years, offering a wide range of precision tools for milling, turning, drilling and threading applications. The company helps customers in the aviation and aerospace industries, automotive, energy and general industry improve process reliability and increase productivity.
Established in 1960, Vargus is the tooling division of the Neumo Ehrenberg Group, one of Europe’s largest privately owned manufacturers and distributors of stainless-steel products and metal cutting tools. Vargus manufactures high-quality threading, grooving and deburring tools for the metals and plastics industries.