Kobelco lines up Rs 50 crore for Sri City facility

Japan-based Kobelco Construction Equipment India Pvt Ltd (KCEI), a group company of Kobelco Construction Machinery Co Ltd, on Monday held the ground breaking ceremony of its facility at Sri City, a private sector multi-product SEZ at Tada in Nellore district of Andhra Pradesh.

The company proposes to invest around Rs 50 crore in the facility. It expects to start production in January 2011 with an initial capacity of 1,200 units a year.

Kotani Shigeto, president & CEO, Kobelco Construction Machinery Company (Japan), said this would be their first major manufacturing plant in India. KCEI plans to set up manufacturing facilities at six locations in Japan, China, Thailand and India, besides joint ventures in US and Italy.