Telco Construction Equipment Company Limited (Telcon), the joint venture between Tata Motors and Japan's Hitachi Construction Machinery Co (HCMC) on Thursday said it would set up a new manufacturing plant in West Bengal with an investment of about Rs 250 crore.
Telcon, the largest manufacturer of construction equipment in India, with Tata Motors holding 60 per cent stake and the rest with the Japanese partner, said in a statement that the new plant would be located at Kharagpur and would be spread over an area of 60 hectares.
The company said construction work for the new plant will start by December this year and operations will commence by March 2008. The facility would have additional facilities for a vendor park.
The Kharagpur plant will manufacture backhoe loaders, midi excavators, off-highway dump trucks, wheel loaders and large mining shovels, it said, adding it would take Telcon towards being a full liner in construction equipment business.
It will also house a full-fledged R&D Centre to enable Telcon to develop products for both domestic and international markets, it said adding HCMC, while actively participating in creating the R&D facilities, would aim at making the new centre a global R&D hub.
Simultaneously, Telcon has been selected as a source by HCMC for select equipment for international markets. The new plant, along with the two existing facilities, will help meet both domestic and international needs, the statement added.
The new plant will employ about 500 people, including both direct and indirect jobs. Telcon presently has two manufacturing plants in India located at Jamshedpur in Jharkhand and at Dharwad in Karnataka.