The Japanese construction company Kobelco is very optimistic on the India’s construction equipment market, especially with strong demand from the roads and mining sectors. The company has been operating in India for 10 years. Now the company has embarked on a consolidation of its manufacturing facility based at Sri City in the state of Andhra Pradesh.
Yutaka (Mike) Goto, Managing Director & CEO, Kobelco Construction Equipment India, said: “The 2,000 units per annum manufacturing plant set up at Sri City is operating at near full capacity, mainly meeting domestic requirement and some exports. We are now in the process of further enhancing the production by internal efficiencies.”
On the occasion of launching new generation mining excavator models SK220XD/SK220XDLC in the 20-24 tonne segment, Goto said: “From the day Kobelco started operations in India 10 years ago, we continue to provide innovative solutions to customers based on their feedback. The new models spread the message ‘Power meets efficiency’.”
Kobelco Construction Machinery, the Tokyo-headquartered company founded in 1930, is a subsidiary of Kobe Steel Ltd. The Indian entity has the plant capacity to produce about 2,000 units per annum.
India’s US$3.5-billion construction equipment market is expected to see rapid growth over the past year after three-four years of relatively slow growth. Given the government focus on the infrastructure sector, the demand for construction equipment is projected to accelerate in the coming years.