Atlas Copco last week decided to build a new compressor manufacturing facility near Pune, India, to meet an anticipated strong growth in demand over the coming years. The investment of about SEK 160 million (about U.S. $25.3 million) will also serve to broaden the product offering to customers in India.

Atlas Copco (India) Limited in April signed an agreement to acquire a plot of land near Pune, where building of the new factory will begin later this year. Construction will be completed in the second half of 2012. The new facility will produce stationary industrial compressors and portable compressors, while Atlas Copco’s existing plant in the Pune area will focus on production of large oil-free and oil-injected compressors.

“The outlook for India’s economic development is very good and we now have an excellent opportunity to significantly increase production capacity in the country, with a modern facility and efficient logistics,” said Stephan Kuhn, business area president, Atlas Copco Compressor Technique.

Atlas Copco, which employs about 1,800 people in India, currently manufactures compressed air equipment at the plant in Pune while construction and mining products are manufactured in Nasik and Hyderabad. The group also has engineering centers located in Pune and in Bangalore, supporting the development of products in India and globally.

“There will be a continuous need for investments in design and development as we continue developing products that are adapted for the Indian market,” Kuhn said. “We expect to double the size of Compressor Technique’s Global Engineering Center in India over the next three years.”

Headquartered in Stockholm, Sweden, Atlas Copco is an industrial group with leading positions in compressors, construction and mining equipment, power tools and assembly systems. Atlas Copco’s Compressor Technique business area develops, manufactures, markets, and services oil-free and oil-injected stationary air compressors, portable air compressors, gas and process compressors, turbo expanders, electric power generators, air treatment equipment and air management systems. It also offers specialty rental services.