Facility closure driven by operational inefficiencies
AIA Engineering Ltd has confirmed that its subsidiary, Welcast Steels Ltd (WSL), will permanently shut down its manufacturing facility located in Peenya Industrial Area, Bengaluru. The plant, which has been operational since 1972, specializes in producing high-chrome grinding media used in cement and mining industries. The closure is scheduled to take effect on December 15, 2025.
The decision was made following a comprehensive review of the plant’s performance, which revealed persistent underutilization and outdated technology. According to the company, the facility contributes only 1.97% to turnover and 0.57% to net worth, making its continued operation economically unviable.
No adverse impact on business continuity
AIA Engineering has assured stakeholders that the closure will not affect its overall operations or supply commitments. The company maintains sufficient surplus capacity at other manufacturing units to meet current and future demand. Employees affected by the closure will be supported through redeployment and severance packages, as per company policy.
Key highlights from the announcement
- Welcast Steels Ltd to permanently close its Bengaluru facility on December 15, 2025
- The plant has been operational since 1972, producing high-chrome grinding media
- Closure driven by outdated technology and low capacity utilization
- Facility contributes only 1.97% to turnover and 0.57% to net worth
- AIA Engineering confirms no disruption to operations due to surplus capacity
Strategic realignment and future focus
The closure aligns with AIA Engineering’s broader strategy to optimize its manufacturing footprint and invest in more advanced, efficient facilities. The company continues to focus on innovation, automation, and global expansion to maintain its leadership in wear-resistant castings.
Industry analysts view the move as a prudent step toward operational efficiency and cost management. With demand for high-performance grinding media expected to grow, AIA Engineering is well-positioned to capitalize on emerging opportunities through its upgraded facilities.
Sources: ScanX News, InvestyWise, MoneyWorks4Me
