Kobelco Construction Machinery, a Japanese earthmoving equipment company, has finalised plans to commission its 1,200 units per annum hydraulic excavator factory in Tamil Nadu in January 2011. The factory is being set on 17 acre at the Sri City industrial estate in Chennai, The company has invested around Rs 50 crore in the plant. Based on the market, it will be scaled up to 3,000 units in two years' time. Kobelco had announced its decision to set up its Indian plant to make 20- tonne excavators last October.

With a plant in India the company will be able to pass on major cost savings - import duty and ocean freight - to the customers. However, the company would continue to import engines and hydraulics while fabrication components would be sourced from India.

On the distribution network, Kobelco will add one or two more dealers to serve northeastern states and Jammu and Kashmir. The company currently has 17 dealers and more than 50 service points.

Contact: Kobelco Construction Machinery. Tel: 0120-407 9900. Fax: 0120-407 9999. Website: www.kobelconet.in