Sterling Tools jumps over 11% after pact with South Korea's Yongin Electronics

Shares of Sterling Tools soared over 11% on Thursday after the company announced it has signed a memorandum of understanding (MoU) with South Korea's Yongin Electronics which will enhance Sterling’s capability to provide solutions for electric vehicles (EV) and hybrid space, as well as other automotive applications, incorporating the latest technology from the South Korean firm.

The partnership is expected to generate ₹250 crore business over the next five years.

Sterling Tools said it will establish a new greenfield manufacturing facility in India to enhance production capacity in line with the agreement. Yongin Electronics will contribute its technological expertise to India's growing EV sector, it said.

The collaboration covers the entire portfolio of magnetic components required for various applications in India's EV and electronics manufacturing growth.

Anish Agarwal, Director from Sterling Tools Limited, said, “This MoU demonstrates Sterling’s commitment to developing the EV and Electronics ecosystem and contributing to “Make In India. We are one step closer to our goal of strengthening our presence and offerings as a provider of green energy solutions in the automotive industry.”

KH Kim, CEO of Yongin Electronics said, "We recognize the significant potential within the Indian EV market. It brings us great pleasure to announce our partnership with Sterling through the signing of an MOU. We are prepared to embark on a journey of mutual growth and collaboration within the Indian EV industry, contributing positively to its advancement.”

Shares of Sterling Tools have gained over 5% since the beginning of the year. The stock has lost over 8% in the last one year.