Leyland-Nissan LCV plant in Chennai

CHENNAI: The Ashok Leyland, Nissan light commercial vehicle (LCV) project crossed a significant milestone on Monday with the signing of MoU with the TN government. It will be acquiring 380 acres to locate their facilities at Pillaipakkam, 40 KM from Chennai. The integrated plant will be utilized to set up vehicle and powertrain manufacturing facilities and a technology development unit for the three companies which the partners had floated in May this year.
The first vehicle from the plant, which is coming with a total investment of Rs 4,150 crore, will be rolled out in 2010-11.The facility, which will make one lakh LCVs a year in the first phase will ramp up capacities to manufacture 1.90 lakh vehicles on peak production. Exports are expected to account for 20% of the first phase, a Leyland statement said.
The MoU was signed by the state's industries secretary MF Farooqui and R Seshasayee represented Ashok Leyland while Andy Palmer, corporate V-P of Nissan was the other signatory. It was signed in the presence of the CM M Karunanidhi.
A TN government release said that the Pillaipakkam unit will employ 4,500 people as direct employees, while another 13,500 indirectly. Ashok Leyland and Nissan announced the formation of three JVs in May this year, one each for manufacturing, powertrain and R&D.
In a related development, the Hinduja group's flagship company also announced its expansion plans in Medium Duty Vehicles (MDV) capacity across its existing plants in Ennore and Hosur in Tamil Nadu and new locations including an undisclosed greenfield plant near Chennai.