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Karl Slym and A M Khan
exchange documents as Vilasrao Deshmukh looks on
General Motors (GM) has formalised an agreement
to build a new engine plant in Talegaon, in Maharashtra. An
agreement to this effect was signed between GM India President and
Managing Director Karl Slym and A M Khan, Principal Secretary
(Industries), Government of Maharashtra, in the presence of
Vilasrao Deshmukh, Chief Minister of Maharashtra, and host of
other dignitaries.
The initial investment in the new GM powertrain
facility will exceed US$ 200 million. This is in addition to more
than US$ 300 million already invested in the said facility to
manufacture vehicles. The engine plant will have an annual
production capacity of 160,000 engines, with the capability of
being expanded to 300,000 engines per year. The engine and the car
manufacturing plant will employ more than 1400 people in the same
facility to begin with and going forward, the employee strength
will go up depending upon the requirements.
Speaking on the occasion, Mr Deshmukh said, “We
are indeed proud and privileged to have General Motors in our
state. The presence of GM in our state once again demonstrates the
strengths of Maharashtra as a leading investment destination.”
Mr Deshmukh said that the state will continue to extend full
support to GM and ensure its success.
In his speech, Mr Slym said “The new engine
facility demonstrates GM’s commitment to India. We cannot remain
a global industry leader without a strong presence in the
high-growth market of India. This will enable us to capture more
opportunities in one of the fastest-growing vehicle markets in the
world.
“The Talegaon engine facility is an important
component of GM’s global strategy to establish a strong presence
in this market. This is just one of a number of investments,
totalling more than US$ 1 billion that GM has made over the course
of the last few years in emerging markets around the world such as
China, Korea, Russia and India. The decision to build the engine
facility also in India further demonstrates GM’s confidence in
our future and our commitment to growing the business all across
the globe,“ said Mr Slym.
Mr Slym also said, “The new facility will
enable us to continue expanding our product line-up in India. We
have been scouting for a suitable site to set up an engine
facility for the past six months. We chose Maharashtra largely
because of its outstanding logistics and the pro-active approach
demonstrated by the state leadership and the officials in the
course of building our car manufacturing plant at Talegaon which
is getting commissioned on Tuesday next. It also offered
advantages in terms of its employment base, costs, infrastructure,
geographical location, etc. After a detailed due diligence and
thoughtful consideration, we felt that Maharashtra was the right
fit for the new facility.”
The engine facility is expected to be completed
by the first quarter of 2010.
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