Mando Corp, South Korea's second-largest auto parts maker, said on Thursday it planned to set up two factories in India this year to increase production in the fast-growing car market.
The unlisted maker of brake and steering systems said it would establish a steering system factory and a foundry in India, investing part of the 185 billion won ($192.3 million) the company earmarked for capital investment in 2006.
Mando said it was also considering companies in Russia, Iran and the Czech Republic, but did not elaborate.
"We will aggressively invest this year to build our presence in India's auto part market," said the company in a statement.
The company did not disclose how much it would spend on the new factories. Mando already has a brake system plant and a research centre in India.
Mando was put up for sale last year by a consortium of buyout firms, JP Morgan Partners and Affinity Equity Partners, which paid $446 million in 2000 for a 72.3 per cent stake.
Hyundai Motor Co, South Korea's top auto maker, and builder Halla Engineering & Construction Corp have shown interest in Mando after Germany's Siemens and US based- TRW Automotive Holdings Corp backed out of negotiations.
Hyundai Motor Co, South Korea's top auto maker, and builder Halla Engineering & Construction Corp have shown interest in Mando after Germany's Siemens and US based- TRW Automotive Holdings Corp backed out of negotiations.