Mumbai, Sep 9 (IANS) Automobile manufacturer Hero MotoCorp (HMCL) on Wednesday said that its first global manufacturing facility at the South America nation of Colombia had commenced operations.
Inaugurated by Colombian President Juan Manuel Santos and Hero MotoCorp chairman Pawan Munjal, the first facility of Hero outside India has an initial project investment of $70 million.
“The plant has been built at a project cost of $70 million, of which $38 million has been utilised in capital expenditure (capex) and rest will be used as working capital over the next few years. It will also generate employment for approximately 2,200 people in the region,” the company said.
Spread over 68,000 square feet, the plant will have an initial production capacity of 80,000 units a year which will go up to 150,000 units by the end of the year.
“This facility will be a key resource for us as we plan to further consolidate our market position with a range of products across segments. The plant will also act as a guiding light, as we work towards transforming ourselves into a global automotive giant with manufacturing facilities across the globe,” said Munjal.
The hub will also act as an export hub for other South and Central American countries and manufacture ten products from the HMCL portfolio, including the new scooter Dash.
“Poised to be our export hub for the region, the plant here in Colombia will generate employment opportunities for local citizens, and also help in contributing to the overall development of the economy,” said Munjal.
Currently Hero sells its range of two-wheelers through 160 outlets spread across 133 cities and towns in India. It also sells its products in 24 countries across the world. HMCL has also established assembly units in the east African countries of Kenya, Tanzania and Uganda.
“With another overseas manufacturing plant coming up in Bangladesh, Hero is fast building up a global manufacturing base to cater to growing demand for its products in international markets,” the company said.