November 14, 2007 -- Japanese firm Mitsui Chemicals Group is investing Rs 300 million (US$7.6 million) to set up a new unit here to manufacture polypropylene compounded resins to be used by automakers for making bumpers, panels and pillars.

The company has already tied up with Japanese carmakers like Honda and Suzuki for supplying the raw material and is also in talks with local automobile giant Tata Group.

"We are investing Rs 300 million in the first phase with a focus on Japanese automakers operating in India. The investment would go up in future depending on the demand of the product in the country," Mitsui Prime Advanced Composites India Managing Director Toshihide Kihara told reporters here.

The facility is spread over 15 acres with an initial capacity 15,000 tonnes per annum at 'Japanese Investment Park' in Neemrana. The unit is being set up by the group's subsidiary Mitsui Prime Advanced Composites India and is expected to be operational by first quarter of 2009. The unit marks Mitsui Prime's foray into India. It expects a turnover of around Rs 1.45 billion from operations in the country.

Last year, in a MoU signed between Rajasthan government's investment promotion agency RIICO and JETRO (Japanese External Trade Organization), RIICO had committed to reserve industrial lands for Japanese investors in Neemrana for auto component sector in order to enhance Japanese investments in the State.

In Bhiwadi, RIICO has already provided about 600 acres of land to Honda Siel Cars India Ltd (HSCIL) to set up its second manufacturing plant. Other automobile firms such as Ashok Leyland and Eicher are also present in the region.

Source: Asia Pulse