Kia Motors To Set Up Car Manufacturing Unit In AP

The Andhra Pradesh government has signed a Memorandum of Understanding with Kia Motors Corporation for the setting up of a car manufacturing facility by the latter in Anantapur district.

The MoU was signed by Solomon Arokiaraj, Industries Secretary 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 its associates and vendors, will set up a greenfield car manufacturing facility in Erramanchi in Anantapur district with a total investment of USD 2 billion.

The company will produce strategic compact sedans and compact SUVs at the facility, which will be designed to suit the Indian market conditions. The unit will incorporate facilities for stamping, welding, painting and assembly.

Kia Motors will also establish an advanced training centre and a township for its employees at the facility.

The project is expected to generate employment for over 11,000 people, both permanent and temporary. Work on the project is likely to commence in the last quarter of 2017, and the first batch of cars is expected to roll out in the second half of 2019. The facility will eventually produce up to 300,000 cars each year.

Speaking on the occasion, Chief Minister Chandrababu Naidu said that it was a proud moment for him as well as for the people of Andhra Pradesh to welcome a global automobile giant to the state. He said that he was very happy that Kia Motors had selected Andhra Pradesh to set up their plant in India.

"Today's MoU will go a long way in our development history, and will also strengthen our commitment for the Make In India program," he said. "The project will have a spin-off effect on industrial development and employment in backward areas in our state," the Chief Minster said. He added that he would personally monitor the progress of the project every fourth Monday, and appointed the District Collector of Anantapur as the nodal officer for the project.

Giving a profile of Kia Motors, Han-Woo Park, President of the company, said that Kia was Korea's second largest vehicle manufacturer, and had a production capacity of 3.5 million units and annual revenues of USD 45 billion. The company had 14 manufacturing and assembly operations in 5 countries.

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