AP signs MoU with Kia Motors to produce compact sedan and compact SUV

Vijayawada April 27 (Maxim News): It’s a dream come true for the State of Andhra Pradesh. The government had been relentlessly working to position the State on India’s automobile manufacturing map, and today, and its efforts have borne fruit with the signing of the Memorandum of Understanding with Kia Motors Corporation to set up a car manufacturing facility in Anantapur District. The MoU was signed by Solomon Arokiaraj, Secretary, Industries, Government of Andhra Pradesh and Han-Woo Park, President of Kia Motors, in the presence of the Chief Minister N. Chandrababu Naidu.

Kia Motors along with his associates and vendors will set up a green-field car manufacturing facility in Erramanchi in Anantapur District with total investment of USD 2.0 billion. The company will produce strategic compact sedans and compact SUVs, which will be designed to suit the Indian market conditions. The unit will incorporate facilities for stamping, welding, painting and assembly. Besides an advanced training center, Kia Motors will also establish a township for their employees. The project is expected to generate employment for over 11,000 people, both permanent and temporary.

The project is likely to commence work in the last quarter of 2017 and is expected to roll out the first batch of cars in the second half of 2019, to eventually produce up to 300,000 units each year.

The Chief Minister in his address on the occasion said that it is a proud moment for him and as well as to the people of Andhra Pradesh to welcome a global automobile giant to the State.

“I am very happy that Kia Motors has finalized its investment plans to enter India, and has selected Andhra Pradesh to set up their new plant,” the Chief Minister said. He infact pushed the deadline for trail production from June 2019 to the end of December 2018.

The Chief Minister said that he considers the Automobile & Auto-components as a very important thrust sector for the growth of Andhra Pradesh and that today’s MoU will go a long way in its development history and will also strengthen his commitment towards “Make in India” program.

With an accent on manufacturing efficiency, as India’s automobile industry had made great strides in recent years, the Chief Minister said that he is confident that Kia Motors will bring in its latest technology, both in products as well as in its machinery and also help strengthen the automobiles sector in the State by enhancing its auto-components ecosystem.

On behalf of the Andhra Pradesh Government, the Chief Minister assured Kia Motors that the government machinery would extend all the needed support to the project and will stay committed all though. “We will stand by you and provide a transparency ecosystem”, the Chief Minister added.

Andhra Pradesh is poised to become a very strong hub for Automobile sector in India. Its overall target is to employ at least 2 lakh in the Automobile and Auto components sector by 2020.

The government believes that with the presence of Kia Motors and its ancillaries, the entire region from Anantapur towards Bengaluru will be developed into a strong economic hub. Besides this, the project will have a spin-off effect on industrial development and employment in backward areas within Andhra Pradesh.

The Chief Minster said that he would personally monitor the progress of the project every 4th Monday and appointed the District Collector of Anantapur as the nodal officer for this project. Both the plant manager and the nodal officer would be responsible for the speedy completion of the plant, the Chief Minister said.

In his concluding remarks, the Chief Minster said “I would reiterate my Government’s commitment towards providing Kia Motors with all necessary support and handholding throughout the implementation lifecycle.”

Han-Woo Park, President of Kia Motors in his opening remarks said that he is delighted that Kia is setting up its newest manufacturing facility in Andhra Pradesh.

He expressed his gratitude to the Chief Minister and to Solomon Arokia Raj, Secretary Industries for their efforts in making this MoU happen.

He spoke at length about Kia Motors profile wherein he mentioned that Kia is Korea’s 2nd largest vehicle manufactuer and that it has a production capacity of 3.5 million units and annual revenue of the company is USD 45 billion. The company has 14 manufacturing and assembly operations in 5 countries.

He stated that this MoU is a next major step in Kia’s global expansion plans and that it would help them become a strong player in the overseas market.

He assured the Chief Minister that they would contribute to the economic development of Andhra Pradesh and in turn sought continuous support from the government.

“ Kia Motors and Andhra Pradesh are now a family. Today’s MoU will open a new chapter in our company’s growth and also for the growth and development of Andhra Pradesh,” said Mr. Han-Woo Park.