Hyundai Heavy Industries recently completed a construction equipment factory in Pune, Maharashtra, in Western India, to support its Indian operations.
HHI invested U.S. $52 million in the Indian operation. The new facility has 15,000 square meters of office space and the factory, which can produce 2,500 excavators annually, covers 202,000 square meters.
HHI, which employs 400 employees at its Indian operation, began producing excavators at the new factory in October. The company plans to produce 300, 20-ton class excavators this year, with annual production increasing to 1,000 8- to 20-ton class excavators by 2010. HHI’s goal is to capture 15 percent of the Indian construction equipment market by producing 2,000 excavators by 2012.
“India is the fastest emerging market in the world,” said Park Kiu-hyun, chief operating officer of HHI’s Construction Equipment Division. “We will increase our market share through a local market adjustment strategy and aggressive investment, despite the global economic downturn.”
Japanese construction equipment companies, which already have production facilities in India, plan to expand their investments within the country. Chinese construction equipment makers have also launched a branch office in India recently.
HHI’s Construction Equipment Division has recorded an average annual sales increase of 24 percent since 2004. The company is focusing on the Indian market to continue the division’s growth.