Kobelco starts production at AP crane plant

Japanese construction equipment manufacturer Kobelco Cranes commenced commercial production at its plant in Andhra Pradesh on Thursday.

This is the company’s first production facility outside Japan. Kobelco is the first foreign company to own a facility in India that specialises in the manufacture of complete crawler cranes, according to a press release issued here.

The manufacturing plant, set up in Sri City, a 7000-acre private industrial park in Chittoor district with an investment of Rs 280 crore, would produce 90 units of 100-tonne, 150-tonne and 250-tonne class cranes during the current year.

“The India plant would soon cater to the markets in the neighbouring countries, and would help us sustain and increase our market share in the growing construction equipment market in the county,” said Sin Suke Izumi, president and director of Kobelco Cranes India.

 

The local manufacturing of cranes would reduce the cost of the cranes and will be made available in the price range of Rs 2.5 crore to Rs 10 crore. The company expects to acquire a market share of 20 per cent by 2015, according to the press release.

“It is an achievement to have two subsidiaries of the Kobelco Steel Group to start operations within Sri City. We are positive that the success of Kobelco will attract more Japanese companies apart from the 12 that have already established their presence over here,” said Ravindra Sannareddy, managing director of Sri City.