Hyundai Heavy Industries (HHI), a subsidiary company of the Hyundai Group, Korea, has signed a memorandum of understanding (MoU) with the Maharashtra government to build a construction equipment plant at Pune's Chakan belt at a cost of Rs 260 crore.The factory will produce hydraulic excavators. The company plans to add production lines for other construction equipment later.Principal secretary (industries) V K Jairath signed the MoU on behalf of the state government, while K H Park, COO and senior executive vice president of the construction equipment division of HHI signed the documents on behalf of the Korean company.Production will commence in the next two years with initial production capacity of 3,500 units per year. The facility will include a fabrication shop, assembly lines and a paint shop. Within next five years, the proportion of local component application is expected to reach up to 80%."We hope to increase our corporate value through the operation in India, and expect to be in sustainable growth in the future. The manufacturing unit will also export to the Middle East, south east Asia and Africa," Park said.J S Kim, managing director said, "Our new plant will serve the core activity of global business of the Hyundai construction equipment division, which will help to accomplish HHI's vision."According to the company's estimates, the demand for construction equipment in India has mirrored demand in China, where Hyundai Heavy Industries has nearly 18% of the market share.
