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MACHINIST - Toyota Announces Additional Investment for the Second TKM Plant in India

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Home arrow Engineering, Technology, Research and Development arrow Toyota Announces Additional Investment for the Second TKM Plant in India

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Toyota Announces Additional Investment for the Second TKM Plant in India
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Written by Ganesh   
Thursday, 06 November 2008

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Bangalore, November 5, 2008: Toyota Kirloskar Motor Private Limited (TKM) announced today that TOYOTA MOTOR CORPORATION (TMC) has decided on a capital investment of approximately 68 billion Yen (approximately Rs. 32 billion)  for the second plant currently being constructed on the TKM site.

Earlier, a decision was made to invest approximately 35 billion Yen  (approximately  Rs. 16.47 billion) for the buildings and basic equipment for the second plant.  An additional amount of around 33 billion Yen (approximately Rs. 15.53 billion) will be invested for both general-purpose and specialized equipment necessary for manufacturing a new compact vehicle.

The second TKM plant is scheduled to begin operations in 2010 , with an initial annual production capacity of around 100,000 vehicles.  The second plant will produce passenger vehicles, including the Corolla, as well as a new compact vehicle.  The aim is to meet the broad needs of customers in India, where motorization is expanding rapidly.

Both TKM plants will play an important role in TMC's sustainable plant activities, which seek to emphasize the role of nature in creating production sites that are in harmony with their natural surroundings, by pursuing the following initiatives:

·Reducing energy consumption through the introduction of production technology with lower CO2 emissions
·Using renewable energy sources, such as biomass, solar and wind power
·Striving for a harmonious coexistence with the local community through such activities as planting trees at plants
·Reducing environmental impact through measures such as introducing a wastewater recycling system, using water-borne paints, and achieving zero discharge and landfill.

TKM is a joint venture company established on the outskirts of Bangalore in October 1997 by TMC and the Kirloskar Group.  Currently, TKM produces the Corolla and the IMV series Innova, with annual production in 2007 of 52,000 vehicles (an 18% year-on-year increase).

Once production begins at the second plant in 2010 , the two TKM plants will have a combined annual production capacity of around 160,000 vehicles.

TMC is expanding its local production in India and is actively investing to create attractive products.  Its policy is to continue to contribute to the development of India's automotive industry and to the country's overall economy.

Outline of Second TKM Plant

Location - On the site of Toyota Kirloskar Motor Private Limited (on the outskirts of Bangalore, Karnataka State)
Investment - Approx. Rs 32 billion (approx 68 billion yen)
Start of production - Scheduled in 2010
Annual production capacity - Approx. 100,000 units (when plant becomes operational in 2010)

Outline of TKM

Company name - Toyota Kirloskar Motor Private Limited
Location - Outskirts of Bangalore, Karnataka State
Establishment - October 1997 (start of production: December 1999)
Managing Director - Hiroshi Nakagawa
Equity participation - TMC: 89%, Kirloskar Group: 11%
Land area - Approx. 420 acres (approx. 1,700,000m2)
Annual production capacity - Approx. 60,000 units (After second plant is operational, approx. 160,000 units)
Products - Corolla, Innova
2007 production results - 52,000 units
Number of employees - Approx. 3200  (as of October 2008)

 
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