Japanese machinery maker Kobelco has announced plans to expand its rubber and tire equipment production business in India with an investment of Yen3 billion (€17.5 million).
The project at Kobelco Industrial Machinery India (Kimi) aims to strengthen production capacity and support business growth, said Kobelco 27 June.
It will help the machinery maker meet "further expansion in demand for tire and rubber machinery" in India as car production increases.
Set for completion in fiscal 2027, the project will see the addition of new facilities at Kimi for manufacturing "non-standard compressors."
These include reciprocating compressors, screw compressors and turbo compressors.
The group said it currently produces such compressors in Japan, the US, China and South Korea but will start production in India to "diversify its manufacturing footprint."
The investment will help address future market expansion related to energy transition, improve cost competitiveness and support entry into "the Middle East and Africa markets."
It also aims to reduce "country risk," which Kobelco said has become "more apparent in recent years."
In January, Kobelco opened the Kobelco machinery global capability centre, Chennai (KMGC, Chennai), as Kimi's Chennai branch.
The new unit handles design and development work mainly for tire and rubber machinery and non-standard compressors.
Kobelco said it will use these resources to boost its global market presence in India, aiming to deliver "greater customer satisfaction."
The expansion project is part the "Kobelco-X" transformation initiative, designed to strengthen the machinery division's earning power and growth.
Kimi was originally established in 2010 as LTKM, a joint venture with India's Larsen & Toubro (L&T).
In 2019, Kobelco acquired full ownership and renamed the company Kobelco Industrial Machinery India.
Kimi produces and sells tire and rubber machinery such as mixers and extruders for India and nearby markets.
Kobelco said the business has "steadily expanded" since becoming a wholly owned subsidiary.