The company said it had signed an MoU with the Andhra Pradesh government, in the presence of Chief Minister N. 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 major auto 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 major Isuzu, two-wheeler major Hero Motocorp, Apollo Tyres, Bharat Forge and Brakes India among 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 India and overseas for more than 17 years.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
