The Hindu Business Line : Hyundai Heavy to set up plant in Pune

ANOTHER MILESTONE: (From left) Mr V.K. Jairath, Principal Secretary (Industries), Government of Maharashtra, Mr Ashok Chavan, Minister for Industries, Mr Dong Yern Kim,Hon, Consul General of the Republic of Korea, and Mr K.H. Park, COO & Senior Executive Vice-President, Construction Equipment Division of Hyundai Heavy Industries Co Ltd, at the signing of MoU between Hyundai Heavy Industries and the State Government at a press conference in Mumbai on Tuesday. - Shashi Ashiwal

Mumbai June 19 Hyundai Heavy Industries Co Ltd (HHI) has announced that it will set up a construction equipment plant in Chakan, Pune.

The company will initially invest Rs 260 crore in its 100 per cent Indian subsidiary that will substantially increase according to the growth in the construction equipment market.

The factory will produce hydraulic excavators and has plans to add up the production lines for other construction equipment later.

At the signing ceremony of the memorandum of understanding between the company and the Maharashtra Government, Mr V.K Jairath, Principal Secretary (Industries), said, "It is an important day for us as a Korean player is setting up a plant in Maharashtra."

He further added that the State is the economic power house of the country with $11.5 billion invested in the last 18 months and now the Government is embarking on further investments through special economic zones); 93 of which are approved.

HHI senior officials said that production will begin within two years with initial production capacity of 3,500 units per year. The facility includes fabrication shop, assembly lines and a paint shop. Within next five years, the localisation content of components is expected to reach up to 80 per cent.

Economic ties

Commenting on the project, Mr Dong Yern Kim, Hon. Consul General of the Republic of Korea, said Hyundai's investment in Maharashtra will further strengthen the economic ties between India and Korea. It will play a leading role in bringing more investments from other Korean companies into the State in the years ahead.

Mr Ashok Chavan, Minister for Industries, said there are 43 Korean companies present in the State today and would like that figure to touch 100 in the near future.

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