Chennai, July 7 (UNI) The Daimler-Hero Commercial Vehicles Company, a JV between auto giant Daimler AG Germany and two-wheeler major Hero Group, today signed a Memorandum of Understanding (MoU) with the Tamil Nadu Government for setting up a commercial vehicle (CV) manufacturing facility near here.
Under the MoU, the company would set up its production facility at SIPCOT Orgadam Industrial Park with an investment of Rs 3,000 crore spread over five years to manufacture 70,000 commercial vehicles per year.
The MoU was signed by Industries Secretary M F Farooqui, Daimler Board of Management Member Andreas Renschler and Hero Group's Sunil Kanth Munjal in the presence of Chief Minister M Karunanidhi at the State Secretariat.
Mr Marc Llistosella, CEO of the JV, also signed the MoU, an official release here said.
It said the investments in the facility would be scaled up to Rs 4,000 crore. Once fully operational, it would offer direct jobs to 3,000 people and indirect jobs to 20,000 people.
This was one of the biggest investments from Germany in Tamil Nadu and would help in attracting more FDI from Germany into the state, the release added.
With this new facility, the manufacture of cars and commercial vehicles in Chennai would get a major fillip with Renault-Nissan having already established an integrated motor vehicle facility at Oragadam and car major Hyundai's proposed massive expansion of its manufacturing facility.
UNI GV GM PDT PM1427