Hyundai Heavy Ind to set up plant in Maharashtra

By Staff
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Google Oneindia News

Mumbai, June 19: Heavy industries arm of the Korean major Hyundai, Hyundai Heavy Industries Co Ltd (HHI) today signed a memorandum of understanding (MoU) with Maharashtra government for setting up a construction equipment plant in Pune district.

The factory will come up at Chakan with an initial investment of Rs 260 crore. It will produce hydraulic excavators and plans to add up the production lines for other construction equipment, Principal Secretary (Industries) V K Jairath, who signed the MoU with K H Park, CEO of HHI at the Sahaydri guest house here, told reporters.

Mr Park said production will begin within two years with an initial production capacity of 3,500 units per year. The facility includes fabrication shop, assembly lines and a paint shop. Within the next five years, the portion of local components application is expected to reach up to 80 per cent.

He expressed confidence that this plant will contribute to booming up local economy.

''We also hope to increase our corporate value through the operation in India and expect to be in sustainable growth in the future,'' he added.

Republic of Korea Consul General D Y Kim said ''Hyundai's investment in Maharashrta will contribute in further strengthening the economic ties between India and Korea. Accomplishment of this investment by a world renowned company in Korea will play a leading role in bringing more investment from other Korean companies into the state in years ahead.'' Reiterating the state's commitment to the construction equipment industry, Industries Minister Ashok Chavan said Maharashtra has always been at the forefront in industrial development and have provided superior infrastructure to companies especially in the construction equipment sector.

He assured all co-operation to Hyundai.

J S Kin, Managing Director of the new subsidiary company, said the new plant will serve the core activity of global business of Hyundai Constructions Equipment division. Hyundai will increase the amount of initial investment of Rs 260 crore considering the growth of the Indian construction equipment market.

The annual market size of Indian Hydraulic excavator is about 7000 during 2006-07 and is expected to grow to 30,000 units by 2015, he added.


UNI

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