The $200 million Japan-based Nissei ASB Machine has set up a 100 per cent export-oriented unit (EOU) at Ambarnath near Mumbai for manufacturing machine components.
Nissei ASB is the world's second largest manufacturer of machines used for producing polyethylene terephthalate (PET) bottles.
The plant which has been set up at a cost of Rs 86 crore, will be inaugurated by Maharashtra Industries minister Padamsinh Patil on Tuesday.
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The unit has been set up by ASB International, a 100 per cent subsidiary of Nissei which was established in India about two years ago.
"ASB International expects to achieve a turnover of $3.5 million in its first year of operations. The company has agreed to an export obligation of $48 million in its first five years of its operations. The export earnings from this unit will make a significant contribution to India's total export earnings expected from the engineering sector," said Daiichi Aoki, chairman and representative director, Nissei ASB Machine. The company's facility is spread over 41,800 square metres.
The plant will initially manufacture machine components to be used in the company's main production facility in Japan. In the second phase sub assemblies using various components will be manufactured.
In the third and final phase complete machines will be manufactured and exported. ASB International plants export fully manufactured machines by December 2000. On full scale operation, this facility can produce about 17 machines per month. Apart from Japan the company has a manufacturing facility in China which caters exclusively to the Chinese market. "We chose to set up this facility in India because of the country's capable and qualified technical workforce," Daiki stated.
Nissei of Japan has recently come up with diamond like coating technology which can be used for coating beer bottles. It is planning to work in collaboration with companies which are interested in the beer bottle business.
The parent company at present exports 90 per cent of its production to about 80 companies. In the long run India will be used as production base to export the machines directly, company executives said.
The company's customer base in India includes Padmini Polymers, Manjushree Extrusions, Jauss Polymers, Polycon International, Pearl Polymers, JIL Plastics and ATCO Industries.