Kia signs MoU with State Govt. for expansion

Kia Corporation has signed an MoU with the Andhra Pradesh Government at the CII Partnership Summit in the presence of Chief Minister N. Chandrababu Naidu and Kia India MD and CEO Gwang Lee for expansion.

Kia, which currently manufactures 4.3 lakh cars annually at its Anantapur plant, has entered into an agreement with the State Government on Thursday to increase production capacity by another two lakh cars per year.

With the expansion, Kia’s total annual production capacity in Andhra Pradesh will reach 6.3 lakh cars. Kia Corporation will invest Rs. 19,000 crore to expand its Penukonda manufacturing plant in Anantapur district. The expansion is expected to generate employment opportunities for 12,000 persons.

Kia is currently exporting  Made-in-AP cars manufactured at its Andhra Pradesh facility to more than 100 countries. Now Kia Corporation has signed an agreement to establish a car manufacturing unit at Erramanchi in Sri Sathya Sai district. The company will invest USD 2 billion in setting up the expanded car manufacturing facility.

The MoU was signed by the AP Industries Department Secretary and the CEO of Kia Corporation in the presence of Chief Minister Chandrababu Naidu.

Speaking on the occasion, Chief Minister Chandrababu Naidu said nobody had imagined that Kia would establish a car manufacturing unit in Anantapur. “We made extensive efforts in the past to bring Kia to Andhra Pradesh. We facilitated the establishment of the Kia plant by bringing water to the Gollapalli Reservoir. Also, we provided connectivity to the National Highway and Bengaluru Airport before inviting the company to Andhra Pradesh.”

The Chief Minister said he personally visited South Korea and convinced the company’s management. The plant was constructed in just 14 months, and he inaugurated the first Kia car manufactured in Andhra Pradesh.

Also read: Lokesh lists advantages of investing in AP

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