Hyosung Corporation of South Korea, the largest global spandex producer, is likely to invest around Rs 30 billion (Rs 3,000 crore) in a manufacturing facility in Maharashtra, a top government official said on Friday.
The project will be set up in Aurangabad Industrial City (AURIC), a greenfield smart industrial city being developed across 10,000 acres, as part of the Delhi-Mumbai Industrial Corridor (DMIC), the official said.
"Hyosung Corporation is likely to invest around Rs 30 billion (Rs 3,000 crore) in a manufacturing facility in Maharashtra. In the first phase of the project, the company will invest Rs 12.5 billion (Rs 1,250 crore) and the state government will soon take a decision on its request to allot 100 acres land near Aurangabad," the official told PTI.
"Work on the project will begin in April this year and the production is expected to start in May next year," the official said.
The land cost would be around Rs 1.2 billion (Rs 120 crore) and the company has already paid around five per cent of the amount, he said.
Around 1,000 jobs are expected to be generated in the first phase of the project, the official said.
Hyosung Chairman and CEO Cho Hyun-joon will be attending the 'Magnetic Maharashtra' investor summit in Mumbai next week, the official said.
Hyosung, a leading chemical and technological textile company, had then evinced an interest in investing in spandex manufacturing for the textile sector, the official said.
Hyosung Corporation feels that India is a key focus market for the company, which is working with several leading Indian players in the textile field, he said.
The market size for spandex yarn in India is estimated to be over 1,500 metric tonnes this year and the growth of Indian spandex market has been over 10 per cent between 2014 and 2015, he said.