Tata Motors is marching towards Solvakia! Going to invest $2 bn to build a manufacturing plant

Tata Motors wants to expand its business to Slovak Republic where its subsidiary Jaguar Land Rover is going to invest $2 billion to build a plant in the first phase.

The new plant would help generate more than 50,000 jobs, according to European nation's Economy Minister Vazil Hudak.

Hudak said on Thursday: "We are happy to inform you all that the first Indian company to invest in Slovak Republic is Tata's JLR.”
He was speaking at an interactive meet organised at the World Trade Centre by the All India Association of Industries (AIAI).

According to him, this move would generate 400 direct jobs at the plant and another 50,000 supplementary jobs in allied sectors.

The minister, who met Tata Sons chairman Cyrus Mistry after the meeting, said this is the best time to invest in the country.

He said political safety and robust economy are the strength of his country and the firm would make benefits.

In August, JLR signed a letter of intent for the potential new plant in Nitra city, western Slovakia.

Speculation is rife on the quantum of investments in the plant, with some media reports pegging it at GBP 1 billion.

Tata Motors is doing a "feasibility study" with the Slovakian government to explore plans for a factory with an installed capacity of up to 3,00,000 vehicles over the next decade, it said, adding, the plant will manufacture aluminium JLR vehicles and start production in 2018.
"The move marks the next step in the company's strategy to become a more competitive global business by expanding its manufacturing operations into new international locations in the future," it said.

Hudak is leading a delegation seeking Indian investments from the engineering, information technology and automobile components, and also looking for partners to start ventures in automobile, defence, agriculture, pharmaceuticals and renewable energy space, the AIAI statement said.

(Image: Reuters)