Carborundum Universal (CUMI), a constituent of the Murugappa group, has announced that it has clinched a memorandum of understanding (MoU) with the administration of the Volgograd region, Russia for building a 100 thousand tons SIC Fusion Plant at a cost of about US$ 50 million through its arm Volzhsky Abrasive Works, Volgograd region, Russia.

According to the proposed plant will be equipped with environmentally friendly fusion technology and also high energy efficiency.

The sources further revealed that Volgograd region will support the project by arranging power supply, raw material supply and suitable land.

The company claims that the project would offer direct and indirect employment of over 500 people in the region.

According to the reports, Carborundum Universal has purchased Volzhsky Abrasive Works, Volgogradin in September last fiscal.

CUMI has its major manufacturing units in India, Russia, China and South Africa and has operations in nine countries including Australia, Canada, Middle East, US and Thailand.

Shares of the company gained Rs 0.5, or 0.56%, to settle at Rs 91. The total volume of shares traded was 131 at the BSE (Friday).