New Delhi, Dec 7 (KNN) A memorandum of understanding has been signed between Andhra Pradesh Economic Development Board (APEDB) and Daiki Aluminium Industry of Japan under which Daiki will invest up to USD 30 million (about Rs.225 crore) in AP to build an aluminium alloy unit with a capacity of 84,000 tonnes per year.

The project is expected to generate direct employment for 600 people.

The company has submitted the detailed project report and will apply for pre-establishment approvals and clearances soon.

The foundation stone is planned to be laid in early February.

CEO of APEDB, Krishna Kishore said, “Aluminium recycling is gaining in importance as an economically valuable secondary raw material across the world.”

“The State continues to fill existing gaps in the circular economy and is delighted to have India’s biggest recycling aluminium alloy plant in Andhra Pradesh,” he said.

“The plant will have a low-emission profile as 20-25 per cent of the investment will be spent on pollution-control machinery, equipment and environment education,” Kishore added.

Established in 1922, Daiki Aluminium is one of the oldest alloy manufacturing companies in the world.

Daiki aims to capture the demand requirements of aluminium alloy in India and expand the market sequentially.