Date:06/10/2006 URL: http://www.thehindubusinessline.com/2006/10/06/stories/2006100601650200.htm

Back Ashok Leyland to set up bus assembly unit in UAE

Our Bureau

Initial investment to be $5 m

Chennai , Oct. 5

Ashok Leyland, the Hinduja Group Company, has entered into an agreement with the Ras Al Khaimah Investment Authority (Rakia) to set up a bus assembly unit at Ras Al Khaimah, the UAE, according to a press release from Ashok Leyland.

It will be set up with an initial investment of $5 million (Rs 23 crore) with a capacity to build 1,000 buses of international styling, manufacture and quality. The unit to be managed and operated by Ashok Leyland is expected to start production in a year's time.

Industrial Licence

The bus assembly unit will eventually be upgraded to a vehicle assembly plant for trucks and buses in the second phase. The unit will use Ashok Leyland chassis and bus body CKD units from India, including Irizar TVS.

The facility will include a modern paint shop for bus bodies and employ 450 workers.

The agreement was signed on Thursday by Mr R. Seshasayee, Managing Director, Ashok Leyland, and Dr Khater Massaad, CEO, Rakia, a public body established by the Government of Ras Al Khaimah.

The unit will have an industrial licence that will enable duty-free import of vehicle kits and duty free export of finished vehicles to the GCC and the West Asia, the release said. Ashok Leyland has a 60 per cent share in Dubai's standard bus market with exports to the region expected to be in excess of 1,500 vehicles a year, the release said.