The auto component manufacturer is part of the Canadian major Magna International and already has a presence in the Pune region, where some of its customers are located.
The greenfield facility will come up within a year, industry department officials confirmed to The ET. The 29 acre plot of land where this plant will come up has been sold to the Canadian company byZF Steering Gear India for Rs. 47 crore.
ZF Steering, a Rs. 298 crore joint venture with ZF Lensksysteme for the manufacture of mechanical and hydraulic powered steering gears for the automotive sector, had acquired the land in the Talegaon industrial area for its proposed expansion.
Dinesh Munot, chairman and managing director, ZF Steering, explained that the sale has been effected since these are uncertain times. ""We don't need to invest now in these times of uncertainty. Industry is going through a dull phase and future growth is uncertain,"" he said, explaining why they have sold off the land.
This plot would have housed expansion of the steering gear capacity for the JV which would have added to its existing plant at Vadu, about 25 kms from Pune on the road to Ahmednagar.
Talegaon and its neighbouring industrial areas of Pune, Chakan and Ranjangaon is auto-focused hub, home to domestic and international auto manufacturers and an auto component eco system. Among the companies in this region are Tata Motors, Bajaj Auto, Force Motors, Fiat, Volkswagen, General Motors and Foton along with off road equipment manufacturers JCB, John Deere, Hyundai and Sany. The two big Chinese OEMs are located here, namely Foton and Sany.
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