Johnson Electric to expand Chennai facility

Company to invest $200 mn in three countries including India

Hong Kong based Johnson Electric to invest $200 million to expand its production operations in India and three more countries. The investment will be partially supported by International Finance Corporation.

When contacted the company refused to comment. IFC in a disclosure said that JE is now looking to expand its production operations in Brazil, Mexico, Serbia and India and has invited IFC to consider providing financing to support this expansion.

The total project cost is estimated at $200 million. The proposed IFC investment is a $75 million A loan for IFC's own account.

These production facilities support, respectively, JE's global supply chain in the Americas, Europe and Asia, selling to automotive OEMs and other industrial users.

In India, the company has production facility is located at Chennai.

Johnson Electric Holdings Limited has leased 22,000 sq ft plant at Chennai. The plant produce motors for engine cooling fan modules and gear motors for window lift systems.

"In response to customer demand, the company expects that the Chennai site will develop into a full range supplier of electric motors and motion subsystems to the automotive industry in India," said the company in a statement earlier.