Ashok Leyland's UAE expansion plan
As part of its global expansion plans, Ashok Leyland is setting up a $5 million bus assembly unit in UAE.india Updated: Oct 05, 2006 20:19 IST
As part of its global expansion plans, Ashok Leyland, the Hinduja Group flagship in India, is setting up a $5 million bus assembly unit here that will be gradually upgraded to a vehicle assembly plant for trucks and buses.
An MoU to set up the unit was signed here between Ashok Leyland and the Ras Al Khaimah Investment Authority (RAKIA).
The agreement was signed by R Seshasayee, Managing Director, Ashok Leyland, and Dr Khater Massaad, CEO of RAKIA, a public body established by the Ras Al Khaimah government, in the presence of Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy ruler of Ras Al Khaimah, one of the emirates of UAE.
The facility will include a state-of-the-art paint plant for bus bodies.
The unit, with an initial annual capacity for 1,000 buses of international styling, manufacture and quality, will start operations as a bus body assembly using Ashok Leyland chassis and bus body CKD kits sent from India including Irizar TVS, Seshasayee told PTI after the signing ceremony.
He said the plant will be commissioned in the next 12-15 months and the work on the second phase will start along the same time. The unit will be managed and operated by Ashok Leyland.
Asked on the choice of Ras Al Khaimah for the plant, he said the emirate was chosen after a lot of studies which showed favourable investment climate.