Wind turbine maker Vestas Wednesday said it will establish a new factory in Chennai which would quadruple local manufacturing jobs.
The global demand for wind energy continues to grow both in volume and the number of markets, where wind energy offers a sustainable and cost-competitive solution for meeting the world's energy needs, the company said in a statement.
"To address this, improve competitiveness and expand our supply chain footprint in India, Vestas intends to establish a new nacelle and hub assembly factory in Chennai in the state of Tamil Nadu," it added.
The new factory will combine Vestas' two existing facilities in Tamil Nadu, creating an expanded, optimised and scalable production hub with four times as many local manufacturing jobs in the state.
By building this expanded production facility, we will serve our customers' needs in one of our key markets even better and generate hundreds of local jobs, while also improve our global manufacturing footprint and increase our export capabilities from India with the aim of making it a global renewable energy manufacturing hub, Vestas Asia-Pacific President Clive Turton said in a statement.
Vestas and Invest India's cooperation has set a record for executing an efficient and timely project completion with a sizable job creation. This result highlights the Prime Minister of India's objective of ease of doing business and making India one of the most preferred investment destinations," Deepak Bagla, managing director and CEO, Invest India said.
While the new facility will serve the growing wind market in the region, it will also act as a strategic export hub leveraging Vestas' global reach.
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The new factory is expected to be operational by the end of 2020, where it will add to Vestas' strong current presence across India, including a sales office in Mumbai, a research and development centre in Chennai and a blade manufacturing facility in Ahmedabad.
In total, Vestas currently employs more than 3,400 people in the country. Vestas has been present in the Indian market since 2006, where it has played a key role for the development of wind energy in the region.