Kobelco Cranes India (KCI), the Indian arm of the Japanese crane manufacturer Kobelco Cranes, commenced work for its second production unit at Sri City on Wednesday, with the first unit hitting its full capacity.

Tsukamoto, President & CEO, Kobelco Cranes, Japan, along with Yutaka Goto, President & Director, KCI, performed pooja in the presence of Hidehiro Ishiura, Director General, JETRO and Ravindra Sannareddy, Managing Director, Sri City, according to a statement.

Seiji Baba, Consulate General of Japan in Chennai, said: “Consequent to the visit of State Chief Minister N Chandrababu Naidu to Japan, leading industries are showing keen interest in investing in AP, and this will strengthen the business relation between the two countries.”

Yutaka Goto said, “The new unit is intended to meet the demands from shipping industry. We would fully utilise our facility to expand our business in India and in the neighbouring countries.”

KCI had set up its first unit at Sri City on a 10-acre plot in 2012 and within two years it rolled out its 100th crane.

This is Kobelco’s first overseas crawler crane production base. It manufactures hydraulic crawler cranes of 100-tonne, 150-tonne and 250-tonne class.

As this facility is bursting at the seams, KCI had signed an agreement with Sri City for additional space during November 2014.

By maximising the advantages of local production in India, a market where further growth in demand is expected, Kobelco Cranes is keen to capture a greater share of market demand and firmly establish a local presence.