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Home arrow News arrow Business News arrow Kobelco inaugurates excavator manufacturing plant near Chennai
Kobelco inaugurates excavator manufacturing plant near Chennai Print E-mail
Written by Subash   
Friday, 15 April 2011
Chennai: Kobelco Construction Machinery Company Limited, a subsidiary of Kobe Steel Ltd, Japan, has inaugurated its excavator manufacturing plant at Sri City Special Economic Zone, about 55 kms from Chennai. This is the company's ninth facility worldwide.

The new unit has been set up at an investment of Rs.70 crore and has a capacity to build 1,200 units per annum. To begin with, the 20 tonne excavators will be built here, followed by 14 and 35 tonners in a couple of years. In the first phase, with a total investment of Rs. 100 crore, the plant is expected to reach full capacity in 2013-14.

The facility is constructed on 68,000 Sq. mts. of land, and will have Assembly, Painting and Shipping lines. Flexible plant equipment will enable KCEI to also make large machines, to meet future growth in demand.

This year the plant is expected to produce 600 units. This will be doubled by end of 2012.

The excavators will have 50 per cent localisation. Critical systems and components like the engine, electronics etc will be imported from Japan and Thailand. The localisation will go up to 65 percent in a few years.

In the second phase the capacity will be raised to 2,400 excavators per annum.

"Kobelco realised that increasing its presence in the steadily growing Asian region is vital for its growth," said Shigeto Kotani, president, Kobelco Construction Machinery, Japan. The company expects to grow rapidly with initiation of local manufacturing.

Last year the company sold 400 units. Vikram Sharma, managing director and CEO of Kobelco Construction Equipment India said that, with the new manufacturing facility commissioned, the company hopes to double  it's sales this year. The company clocked a turnover of around Rs.200 crore in 2010.

The new manufacturing facility will cater primarily to the domestic market. However, in the future, it could also be used for exports to neighbouring countries. The company currently has plants in Japan, China, Thailand, US and Italy.

The plant was inaugurated by Shigeto Kotani, President, Kobelco Construction Machinery, Japan in the presence of Sam Bob, Industries Secretary, Govt. of Andhra Pradesh. Many officials of the Andhra Pradesh Government, representatives of Kobelco Group Companies worldwide also graced the occasion.

The plant will be a part of the existing Kobelco Construction Equipment India Pvt. Ltd. (KCEI) which currently markets & services KOBELCO brand Excavators from its Head Quarters at Noida (near Delhi).

Kobelco Construction Equipment India is a joint venture between Kobelco Construction Machinery and the ITOCHU Group. Kobelco holds 95 per cent stake in the entity.

Last Updated ( Saturday, 16 April 2011 )
 
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