Synergies Castings Ltd, a leading AluminiumAlloywheel manufacturer, will establish a Majorgreenfield Aluminiumcasting and specialty AlloyWheelmanufacturing facility in this port city of Andhra Pradesh, it was announced on Tuesday.
The company said it had signed an MoU with the Andhra Pradeshgovernment, in the presence of Chief MinisterN. Chandrababu Naidu, for this purpose.
This new facility with an annual production capacity of 2.4 million wheels per year, benchmarked at 18" wheel size will have the most sophisticated casting, machining, painting facilities with Embedded Digital Manufacturing Technologies
The project cost of $100 million will be financed by the existing shareholders, accruals and bank debt, the company said in a statement.
Andhra Pradesh, which is emerging as Majorauto hub in the country, has attracted an investment of $3.7 billion (about Rs 25,000 crore) in the auto sector. The state now boasts of presence of auto companies like Korean Kia Motors, Japanese auto MajorIsuzu, two-wheeler MajorHero Motocorp, Apollo Tyres, Bharat Forgeand Brakes Indiaamong others
Shekhar Movva, President, Synergies, said together with its ancillaries, this venture will provide more than 2,000 skilled jobs in the region.
Together with the ongoing expansion at the existing location, the new greenfield plant being built in Oman, and this proposed new greenfield, the company is on-course to becoming a 6-million-wheel capacity company by 2022-23.
Synergies already has its presence in Visakhapatnam Special Economic Zone and it has been supplying to leading OEMs in Indiaand overseas for more than 17 years.
--IANS
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