Rieter Nittoku facility goes on stream

Rieter Automotive Systems and Nihon Tokushu Toryo (Nittoku) today inaugurated their new plant at Oragdam near Chennai. The new plant was set up with an investment of around $15 million (around Rs 69 crore).

“Rieter and Nittoku are here to serve important OEM clients such as the Nissan and Toyota car manufacturing plants in the vicinity,” the company said. The new facility was part of the two partners’ ongoing strategy of expanding in Asia to meet booming demand in the region, it added.

The plant, inaugurated by Tamil Nadu deputy chief minister M K Stalin, is located in the Sipcot Industrial Growth Centre on the outskirts of Chennai. It will produce acoustic systems and components as well as heatshields for the automobile companies in India and across Asia.

The Oragadam plant is the fourth Rieter Nittoku joint venture in Asia, and it would supply products based on the latest technology from Europe and Japan, the company said in a release.

Wolfgang Drees, CEO of Rieter Automotive Systems, said, “After the successful openings of our joint venture plants in China, we moved quickly to open this new greenfield plant in Chennai with the goal of better meeting the growing demand from our global customers in India.”

The new plant is equipped with the latest production technologies from Europe and Japan, including the first fully robotic water jet system in India for cutting carpets.

The facility is spread over 11 acres and has been running since May 2010, producing moulded carpets, acoustic dashboard solutions, engine compartment parts and aluminum heatshields.

The next expansion phase is set for 2011, which would add to growing number of automotive jobs in Chennai, the company said.