Japan-based Daiki Aluminium Industry Co. Ltd., through its Indian subsidiary, will be setting up an aluminium alloy plant at Sri City in Andhra Pradesh.
Daiki Aluminium Industry India Pvt. Ltd. would make an initial investment of ₹250 crore.
To be built on a 20-acre plot in the domestic tariff zone, the plant is expected to go on stream by February 2020.
The plant will produce aluminium alloy ingots. It will have an annual capacity of 84,000 tonnes. The products will be exported to automobile companies in ASEAN and Japan.
The plant is expected to generate direct employment for about 600 people with 80% of them being women, said a company release.
Daiki plans to capture the demand requirements of aluminium alloy in the country and expand the market in stages.
On Wednesday, Takaaki Yamamoto, president, Daiki Aluminium Industry, took part in the foundation laying ceremony. in the presence of Zhao Rong, chairman, Delta Group of Industries, China.
“We are very pleased to welcome Daiki group, which is one of the world’s largest secondary aluminium production companies. As aluminium recycling is gaining importance as an economically valuable secondary raw material, we are delighted to have Daiki in Sri City, as it will effectively meet the increasing demand for secondary aluminium, and thereby help in saving mineral resources in the country,” said Ravindra Sannareddy, founder-managing director, Sri City.
“We are sure their entry will enhance the symbiotic ecosystem in Sri City, benefiting the auto component manufacturers” he added.
Established in 1922, Daiki Aluminium Industry, based in Osaka, Japan, manufactures and markets aluminium alloy products throughout the world.
With a production capacity of 80,000 tonnes a month, it is one of the largest aluminium companies in the world with clients such as Honda, Toyota and Nissan.