Leyland to set up $5 mn unit in UAE

Ashok Leyland Ltd, the commercial vehicles manufacturer and Hinduja group flagship company, has announced the setting up of a bus assembly unit with an initial investment of $5 million in Ras Al Khaimah, UAE.

This marks the company's first overseas manufacturing foray. The bus unit will be eventually upgraded to a vehicle assembly unit (for trucks and buses) in the second phase.

A company statement said it had signed a memorandum of understanding with the Ras Al Khaimah Investment Authority (Rakia) on Thursday.

The agreement was signed by R Seshasayee, managing director, Ashok Leyland, and Dr Khater Massaad, chief executive officer of Rakia, a public body established

by the Ras Al Khaimah government.

The assembly, which will employ about 450 people, is expected to commence operation in a year.

"The proposed unit will allow local value addition close to a growing market for Ashok Leyland. Customers stand to benefit through better finish and timely delivery, as we can avoid shipping of finished products," said Seshasayee.

As a strategic window to Gulf Cooperation Council and neighbouring countries, the company plans to scale up operations of the unit in phases.

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