South Korean major Hyundai Wia, the car component subsidiary of Hyundai Motor Company, is planning to set up up an auto component manufacturing facility at Nellore in Andhra Pradesh at an initial investment of Rs 1,200 crore. The plant is expected to come up in two phases, and is expected to be operational by April 2011.
Highly-placed sources in the government said the company has sought 50 acres. Nellore is not far from Hyundai?s Chennai plant, and can easily service it.
Hyundai Wia produces auto parts, other machines, airplane parts and various advanced products of satellite imagery as well. The subsidiary was set up in 1976 and has over 2,100 employees.
?The company has approached the state government for about 50 acres at Nellore district to set up an auto component manufacturing facility,? top officials told FE. The company is yet to sign an agreement.
Sources said that the government has given in-principle nod to the plant and has asked the Andhra Pradesh Infrastructure Investment Corporation officials to allot the land. A Hyundai team has done a preliminary study of the proposed land.
This would be the second important investment from a Korean player after Hyundai Motor Company opened a R&D centre in Hyderabad which is its fourth overseas R&D facility. It was set up with an investment of $25 million.
Car manufacturers are increasingly looking to set up their own auto part units to cut down production costs. Toyota Kirlsokar Motor (TKM) has allotted land at its facility in Bangalore to third party component makers to support its small car launch.