Published On:March 22 2018
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Kobelco to invest Rs. 75 cr to expand facility in Sri City.
Kobelco Construction Equipment India (KCEI), the Indian arm of Japan’s Kobelco Group, has started the expansion project of its manufacturing facility in Sri City.
Akira Kinoshita, Director and Senior Managing Executive Officer, Kobelco Construction Machinery (KCM), said: “At present, the plant has an annual production capacity of 2,000 units, and has been operating at near-full capacity meeting domestic requirements mainly and some exports. With the manufacturing capacity almost hitting its upper limit, we decided to further enhance the production capacity by 50 per cent.”
“I am optimistic that this expansion will further drive the economic growth in the region. Also, I am confident this region, in line with AP CM’s vision, will soon grow as an automobile cluster, developing a symbiotic ecosystem benefiting the auto component makers,” he added.
Tetsuo Yamamura, Deputy Director, Shimizu Corporation, said: “Shimizu Corporation, being an engineering design bureau and construction company, has a strong attachment with Kobelco India. We will complete the construction of this new plant well before the scheduled time.”
KCEI will invest Rs. 75 crore for commissioning the new 6,500 square metre plant. It is expected to be ready within 12 months.
The highly automated plant will create direct jobs for 50 people.
By maximising the advantages of local production in India, a market where further growth in demand is expected, KCEI seeks to capture a greater share of both domestic and overseas market demand.
Ravindra Sannareddy, Founder Managing Director, Sri City, said: “Kobelco Group is the first Japanese customer in Sri City and is progressing well. This is the third expansion by the group, following the augmentation of its crane unit and plate processing units in the recent past.”
Kobelco Construction Machinery (KCM), the Tokyo-headquartered company founded in 1930, is a subsidiary of Kobe Steel Limited.
Its Indian arm, KCEI, has completed 10 years of operations.