Hyundai invests in Indian excavator operation
By Becca Wilkins27 November 2008
Hyundai Heavy Industries (HHI) has invested US$ 52 million in a new construction equipment factory in Pune, Maharashtra, in Western India the company announced in a statement.
The company's new office building has 15000m2 of floor space, while the factory, which is capable of producing 2500 excavator units annually, covers an area of 202000m2.
HHI, which employs 400 workers at its Indian operation, began producing excavators at the new factory in October this year.
In the statement the company said it plans to manufacture 300 excavators in the 20 tonne class this year, with annual production in the 8 to 20 tonne class increasing to 1000 units by 2010. HHI said its goal is to capture 15% of the Indian construction equipment market by producing 2000 excavators by 2012.
"India is the fastest emerging market in the world. We expect an 11 to 20% growth in the construction equipment market over the next five years," Park Kiu-hyun, chief operating officer for HHI's Construction Equipment Division said.
"We will increase our market share through a localisation strategy and aggressive investment, despite the global economic downturn," he added.
The statement said India is the second most competitive construction equipment market, behind China. It added Japanese construction equipment companies, which already have production facilities in India, plan to expand their investments within the country and Chinese construction equipment makers have also recently launched a branch office in India.
HHI's Construction Equipment Division said it has recorded an average annual sales increase of +24% since 2004. The company is focusing on the Indian market to continue the division's growth.