On November 21st Hyundai Heavy Industries Co., Ltd. (HHI) completed a construction equipment factory in Pune, Maharashtra, in Western India, to support its Indian operations.

HHI invested US$52 million in the Indian operation. The company’s office building has 15,000m2 of floor space, while the factory, which is capable of producing 2500 Excavator units annually, covers 202,000m2.

HHI, which employs 400 employees at its Indian operation, began producing Excavators at the new factory in October of 2008. The company plans to produce 300 20-Ton Class Excavator units this year, with annual production increasing to 1000 8- to 20-Ton Class Excavator units by 2010. HHI’s goal is to capture 15% of the Indian construction equipment market by producing 2000 Excavator units by 2012.

“India is the fastest emerging market in the world. We expect an 11-20% growth in the construction equipment market over the next five years,” said Mr. Park Kiu-hyun, COO of HHI’s Construction Equipment Division. “We will increase our market share through a local market adjustment strategy and aggressive investment, despite the global economic downturn.”

India is the second-most competitive construction equipment market, behind only China. Japanese construction equipment companies, which already have production facilities in India, plan to expand their investments within the country. Chinese construction equipment makers have also launched a branch office in India recently.

HHI’s Construction Equipment Division has recorded an average annual sales increase of 24% since 2004. The company is focusing on the Indian market to continue the division’s growth.