In order to benefit from the cost advantage of manufacturing in India, global engineering solutions provider Sandvik’s Indian subsidiary, Sandvik Asia today announced the setting up of a new manufacturing facility at Chakan in Maharashtra.

The new facility, at which construction work began today, would be operational by the end of 2016, said a company release.

Sandvik has made an initial investment of $45 million (approximately Rs 275 crore) towards the 53-acre plant and plans to develop the facility further by investing more in a phased manner over the next five years, it said.

“The new world-class manufacturing facility will help the company further innovate and create solutions for India’s emerging needs under the visionary ‘Make in India’ initiative,” the company said.

Sandvik Asia is a strategic growth engine for the industrial group’s emerging markets footprint. The company specialises in manufacturing tools for metal cutting, equipment and tools for the mining and construction industries, stainless materials, special alloys, metallic and ceramic resistance materials as well as process systems. In 2014, the group had about 47,000 employees and representation in 130 countries.