Tata Motors-Hitachi JV decides to set up new plant in WB

New Delhi: Telco Construction Equipment Co, the 60:40 joint venture between Tata Motors and Japan's Hitachi Construction Machinery Co (HCMC), has decided to set up a manufacturing facility at Kharagpur in West Bengal with an investment of Rs250 crore ($53.5 million).

The manufacturing facility, spread over 60 hectares with additional facilities for a vendor park, will manufacture backhoe loaders, midi excavators, off-highway dump trucks, wheel loaders and large mining shovels. The plant will begin operations by March 2008 and will supply domestic and overseas demand.

Telcon already has two existing facilities at Jharkhand and Karnataka and the new facility will help the company meet demand from both domestic and international businesses.

A company statement read, "Telcon needs to create new capacity to meet growing demand from India's infrastructure sector. It has been selected as a source by HCMC for select equipment for international markets. The new plant will take the company towards being a full liner in the construction equipment business," the statement said.

The plant will also have a research and development centre, to enable the company develop products for both domestic and international markets. It will generate employment for about 500 people, including both direct and indirect jobs, the statement said.