South Korean heavy engineering giant Hyundai Group will invest about Rs260
crore for setting up a construction equipment plant at Chakan near Pune in Maharashtra.
Hyundai Heavy Industries (HHI), a subsidiary company of the Hyundai Group,
signed a memorandum of understanding (MoU) with the Maharashtra government for
setting up the plant.
MoU was signed by state principal secretary (industries) V K Jairath and Hyundai
chief operating officer K H Park in the presence of industries minister Ashok
factory will initially produce hydraulic excavators and will later add production
lines for other construction equipment.
will commence in the next two years with initial production capacity of 3,500
units per year. The facility will have a fabrication shop, assembly lines and
a paint shop. The company plans to increase the rate of localisation of components
to 80 per cent within the next five years.
hope to increase our corporate value through the operation in India, and expect
to be in sustainable growth in the future. The manufacturing unit will also export
to the Middle East, south east Asia and Africa," Park said.
"Our new plant will serve
the core activity of global business of the
Hyundai construction equipment division, which will help to accomplish HHI''s vision,"
said J S Kim, managing director of HHI.
estimates the demand for construction equipment in India to go up as in the case
of China, where the company has nearly 18 per cent of the market share.