Ko­belco Con­struc­tion Equip­ment breaks ground for plant ex­pan­sion in Sri City

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Ko­belco Con­struc­tion Equip­ment In­dia (KCEI) Pri­vate Limited, the In­dian arm of the Ja­panese Ko­belco Group, has started con­struc­tion for an ad­di­tional plant in Sri City, in Andhra Pradesh.

Ravin­dra Sannareddy, Founder Man­ag­ing Di­rec­tor, Sri City along with Akira Ki­noshita, Di­rec­tor and Se­nior Man­ag­ing Ex­ec­u­tive Of­fi­cer, Ko­belco Con­struc­tion Ma­chin­ery (KCM), and Tet­suo Ya­ma­mura, Deputy Di­rec­tor, Shimizu Cor­po­ra­tion, re­cently per­formed the ground­break­ing cer­e­mony in Ja­panese tra­di­tion.

“Ko­belco Group is the very first Ja­panese cus­tomer in Sri City and pro­gress­ing very well. We are very happy as this is the third ex­pan­sion by the Group, fol­low­ing the aug­men­ta­tion of its Crane unit and Plate Pro­cess­ing units in the re­cent past, and this tes­ti­fies the in­vestor-friendly ecosys­tem that has al­ready been built in Sri City,” Sannareddy said.

“I am op­ti­mistic that these ex­pan­sions will fur­ther drive the eco­nomic growth in the re­gion. Also, I am con­fi­dent, this re­gion will soon grow as an au­to­mo­bile clus­ter, de­vel­op­ing a sym­bi­otic ecosys­tem ben­e­fit­ing the auto com­po­nent mak­ers.” he added.

Akira Ki­noshita said “at present the plant has an an­nual pro­duc­tion ca­pac­ity of 2000 unit and has been op­er­at­ing at near full ca­pac­ity meet­ing do­mes­tic re­quire­ment mainly and some ex­ports. With the man­u­fac­tur­ing ca­pac­ity almost hit­ting its up­per limit, we de­cided to fur­ther en­hance the pro­duc­tion ca­pac­ity by 50%. We are sure, this ex­pan­sion will pro­mote our busi­ness giv­ing us bright fu­ture.”

KCEI will in­vest­ment Rs. 75 crore for com­mis­sion­ing the new plant of 6500 sqm area. It is ex­pected to be ready in a year. The highly au­to­mated plant will em­ploy di­rectly over 50 peo­ple. When the new fa­cil­ity be­comes op­er­a­tional, the an­nual pro­duc­tion ca­pac­ity of KCEI will be about 3000 of Hy­draulic Ex­ca­va­tors of ca­pac­ity rang­ing from 14 tonnes to 38 tonnes.

By max­imis­ing the ad­van­tages of lo­cal pro­duc­tion in In­dia, a mar­ket where fur­ther growth in de­mand is ex­pected, KCEI seeks to cap­ture a greater share of both do­mes­tic and over­seas mar­ket de­mand.

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