16 Korean companies ink MoUs with Andhra govt

ANI | Updated: Mar 20, 2018 02:12 IST

New Delhi [India], March 20 (ANI): Sixteen Korean automobile ancillaries exchanged Memorandum of Understandings (MoUs) with the government of Andhra Pradesh on Monday, bringing in a total investment of USD 737 million and committing employment to 6,583 people.

Apart from 534 acres at Erramanchi, the companies will establish 71 acres units at Gudipalli and 138 acres units at Ammavaru Palli.

"Only last month, I was at the project site of Kia Motors for the framework installation ceremony, and was very happy to see the significant progress of the project," said Chief Minister N. Chandrababu Naidu.

Kia Motors, along with the auto ancillaries from South Korea, is the largest Foreign Direct Investment (FDI) in India in recent times.

The ancillaries will supply to Kia Motors to cater to the plant's initial capacity of three lakh vehicles per annum.

"I hope that by next March, all of you would have set base so that you will be in sync with the production plan of bringing out the first car then. I am also keen to see more Korean investments come into our state following you, and set up a south Korea township," Naidu said.

"I am confident that this establishment will help build a big automotive ecosystem, and strengthen the ties between Andhra Pradesh and South Korea," he added.

The Chief Minister also spoke about the Backward Areas Ultra Mega Integrated Automobile Projects Policy, and the presence of more than 100 auto component manufacturers including Isuzu Motors, Hero Motors, Ashok Leyland, Apollo Tyres, Bharat Forge and others.

"Make Andhra Pradesh your second home, as the chosen area for the auto-cluster, Anantapur, is strategically located close to Bengaluru and is a part of two of the state's main industrial corridors," Naidu concluded. (ANI)