Amaravati, May 28 : In a boost to the investment sentiment in the state, South Korean auto major KIA Motors India CEO announced an additional investment of USD 54 million in Andhra Pradesh.
Speaking at the AP government's flagship program 'Mana Palana, Mee Soochana' which roughly translates to 'Our governance, Your Suggestion' on Thursday, the KIA Motors India CEO, Kookhyun Shim said the investment will be used in expanding the existing manufacturing facility at Ananthapuram district in the state.
The investment will be focussed on manufacturing SUV vehicles in the state.
The announcement assumes significance in the light of earlier reports that the company was contemplating exiting Andhra Pradesh. The KIA India CEO declared that "KIA is all set to become a model for foreign investors and investments coming to AP".
He further reiterated that 85 per cent of the employment opportunities created by the company are presently catering to citizens of Andhra Pradesh thereby furthering the Chief Minister's vision of generating employment via investments.
The development further adds to the investment climate in the state particularly when COVID-19 has adversely affected the economic scenario in the entire world.
Welcoming KIA's announcement, Andhra Pradesh Chief Minister YS Jagan Mohan Reddy assured all support to investors in the state.
"The stability of the Government which has come to power by winning 151 out of 175 assembly seats and 22 out of 25 parliamentary seats and the Government's will to support potential investors in anyway possible are the state's biggest strengths," he said.
He also said that the Government's will to support investors with land, water, energy and skilled workforce are other key strengths of the state.