Renault-Nissan begins construction work at Chennai plant
Construction work on the new Chennai plant, which will roll out vehicles carrying the French and Japanese automakers Renault and Nissan's badges, has begun, with the ground breaking ceremony taking place on Friday.
The facility, which promises to boast of world class quality standards and state-of-art assembly lines, will have an annual production capacity of up to 0.4 million.
The Renault-Nissan alliance said it would invest Rs.4500 crore ($1.07 billion) on the plant.
According to Shohei Kimura, managing director, Renault Nissan Automotive India Pvt Ltd (RNAIPL), the Chennai plant is important as it forms one of the three joint production projects of the alliance - the other two being at Pune (Maharashtra, India) and Casablanca (Monaco).
"This is an important day in Chennai for Renault, Nissan, our local employees and the community. The new project is a very tangible result of the strength and success of the Renault-Nissan Alliance, and is a clear indicator of RNAIPL's long-term strategy for this important market," Kimura said.
While Renault plans to build a range of vehicles based on its low-cost Logan design, Nissan will build its compact Micra as well as two other models based on its new A-platform.
Other equipments like engines and gearboxes and stampings, which are capital intensive, will be commonly manufactured for both.
The plant, which will be built on 800 acres of land, is expected to be operational from 2010 and will provide 4,000 and 12,000 jobs directly and indirectly.
ABOUT RENAULT-NISSAN ALLIANCE
Renault and Nissan entered into an alliance in 1999, linked by cross shareholdings. French carmaker Renault is the single biggest shareholder of Nissan Motor Co, Japan's third biggest automaker, owning 44.3 percent, while Nissan, in turn, holds a 15 percent stake in Renault.
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