Kobelco launches Rs.75 cr expansion in AP

The Indian arm of the Japanese Kobelco Group, Kobelco Construction Equipment India, has recently started work on the expansion of its manufacturing facility in Sri City in the downstream south at an investment of Rs.75 crore, Director and Senior Managing Executive Officer, Kobelco Construction Machinery, Akira Kinoshita, said, elaborating that currently the plant has an annual production capacity of 2,000 units and has been operating at near full capacity meeting domestic and export market requirements. With the manufacturing capacity almost hitting its upper limit, the company has decided to further enhance the production capacity by 50%. He further said adding that the company is optimistic that the expansion will further drive the economic growth in the region, which is in line with AP CM's vision, which will soon grow as an automobile cluster, developing a symbiotic ecosystem benefiting the auto component makers. While Deputy Director, Shimizu Corporation, Tetsuo Yamamura, said that Shimizu Corporation, being an Engineering Design Bureau and construction company, has a strong attachment with Kobelco India and the construction of this new plant will be completed well before the scheduled time. Similarly, Managing Director & CEO, KCEI, Yutaka Goto said that the company started operations in India 10 years ago, and through Sri City plant it is continuing to provide innovative solutions to customers based on their feedback. Its business increased by 10 times, and hence to meet the emerging market demand it is expanding the production facility. The new plant of 6,500 sqm area is expected to be ready within 12 months. On commissioning, the annual production capacity of KCEI will be about 3,000 of Hydraulic Excavators of capacity ranging from 14 t to 38 t., he insisted.