The Andhra Pradesh government is developing a South Korean cluster project where Kia Motors is likely to be the anchor client along with a few ancillary industries. The project is being initiated by the Andhra Pradesh Economic Development Board (APEDB). Kia Motors has already outlined plans to invest about $1.1 billion in a greenfileld plant in the Ananthapur district of the state. The APEDB said it has signed an MoU with tier 2 and tier 3 ancillaries of Kia Motors referred to as the Korean Association in Chennai for a Korean cluster project. “This is a very vital step towards global visibility and also a great way to carve the path of upcoming collaborations,” J Krishna Kishore, CEO, APEDB, said in a statement.
The Korean Association in Chennai is an association of Korean companies in Chennai across various sectors. The developer proposes to support an integrated industrial cluster in Andhra Pradesh to be occupied by Korean companies which are tier 2 and tier 3 ancillaries of Kia Motors in Andhra Pradesh. It also looks at participation and collaboration with the government of Andhra Pradesh in financing the cluster.
The developer proposes to collaborate with infrastructure providers such as Assetz Infrastructure or any other entity to build the necessary infrastructure for the Korean cluster.
“We are impressed by the vision and mission of the board and hence would like to be a part of it. It is definitely a great step towards growth,” a spokesperson of the Korean Association in Chennai said in the release.
The APEDB looks at commitments to bring in direct investment of approximately `10,000 crore to Andhra Pradesh for the Korean cluster which is likely to generate employment for around 45,000. The Korean Association will provide strength and advantages in terms of investment, technology, planning and design & equipment in setting up the project.