Many textile mills and foundries in Coimbatore buy used machinery and sometimes even the entire plant from foreign countries, including Europe because of the long/delayed delivery schedules for new machines, according to a report.
At least 10 leading textile mills were in the process of finalizing negotiations with units abroad to buy the entire plant and the machines are relocated to India and then operated.
The machines are bought at 17 percent to 20 percent less cost having better technology than the newest domestic machines, according to a source.
Some are very high technology machines, especially the cards, combers and ring frames with auto drafting.
They are mainly from the European Union as many mills were getting closed.
The mills throng for the machineries because many units get the equipment in piecemeal also and above all are easy to handle technically by workers.
At least half-a-dozen foundries units were planning to buy foundry equipment from closed and working units in Europe and the US.
These were mainly in the 'high pressure moulding line' and were modern machines used to make products for the export market. This equipment formed nearly 15 percent of the investment cost in a foundry.
Units that are on an expansion mode look out for machines available in overseas countries mainly through the Internet and after negotiations, finalize the deal.
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