DN Solutions invests 100 billion KRW to establish new factory and R&D center in India

Goal to complete Phase 1 by 2030... Strengthening local market penetration
Operation under Indian government support by 2026... Expanding global competitiveness

DN Solutions, the world's third-largest and South Korea's top company in the machine tool sector, will invest over 100 billion KRW in the first phase by 2030 to establish a new factory and research and development (R&D) center in Bengaluru, India, strengthening its local market presence.

On the morning of the 2nd, Kim Won-jong, CEO of DN Solutions, met with S. Selvakumar, Senior Deputy Secretary of the Karnataka State Department of Industries, at Lotte Hotel in Jung-gu, Seoul, to sign a memorandum of understanding (MoU) for investment in Bengaluru.

The new Bengaluru factory will be DN Solutions' second overseas production facility following the Yantai (烟台) plant in China, which began operations in 2004. The new factory and R&D center are expected to support DN Solutions' global management strategy, which generates 80% of its sales from international markets.

The MoU includes DN Solutions' commitment to invest over 100 billion KRW by 2030 in the first phase to build the new factory and R&D center on a site near Bengaluru, while the Karnataka state government will provide administrative support such as necessary permits and incentives during the process.

The new factory will be located on a 100,000㎡ (30,000-pyeong) site in an industrial complex near Bengaluru and is expected to be completed and operational as early as 2026.

CEO Kim Won-jong stated, "India is a key emerging market with world-class manufacturing capabilities and represents future opportunities for DN Solutions. As a result of our efforts to meet Indian customer demands, DN Solutions' recognition and reputation locally are among the highest compared to global competitors."

He added, "We will continue to develop and launch localized models to satisfy Indian customers and target the market, aiming to build on our success story following China."

The MoU signing ceremony was also attended by M. B. Patil, Karnataka State Minister for Large and Medium Industries and Infrastructure Development, who visited Korea to attract investment, Amit Kumar, Indian Ambassador to Korea, and Ramesh Iyer, Chairman of the Indian Chamber of Commerce in Korea.

Kim Wonjong, CEO of DN Solutions (second from the left), and S. Selvakumar, Senior Secretary of the Department of Industries, Karnataka, India (second from the right), signed a Memorandum of Understanding (MOU) on the morning of the 2nd at Lotte Hotel in Jung-gu, Seoul. They are posing for a commemorative photo with M. B. Patil, Minister of Large and Medium Industries and Infrastructure Development of Karnataka (center), and Gunjan Krishna, Director of the Karnataka Investment Promotion Agency (far right). Photo by DN Solutions

Bengaluru, located in southern India, is close to Chennai, where many Korean companies have established operations. It is known for its well-developed manufacturing supply chains, availability of skilled labor, and stable state government policies. As a result, about one-quarter of local machine tool companies are based in Bengaluru.

With this investment in the factory and R&D center, DN Solutions is expected to further enhance its price and delivery competitiveness in the rapidly growing Indian market. DN Solutions established a technical center in India in 2008, steadily building market trust. Earlier this year, it launched a new machining center product (SVM 4100i) tailored to local needs, receiving favorable reviews.

India is a major emerging market with the world's largest population and high economic growth rates. Recently, with the global manufacturing industry's move to diversify production bases, India is gaining new expectations as a global production hub. The Indian government is actively promoting manufacturing revitalization policies and attracting global corporate production facilities. Consequently, active investments are being made in key machine tool demand sectors such as automotive, electronics, and energy infrastructure.

The new factory and R&D center in India also represent DN Solutions' first large-scale overseas investment since changing its name from Doosan Machine Tools and joining the DN Group in 2022. Once completed, the Bengaluru plant will establish a three-country production system alongside DN Solutions' existing Namsan and Seongju plants in Changwon and the Yantai plant in China.

DN Solutions, which generates 80% of its sales from the global market through a sales network spanning 141 outlets in 66 countries, is strengthening global management across all areas including production, sales, and research and development.

In February this year, DN Solutions established a Vietnamese subsidiary (DN Solutions Vina) in Ho Chi Minh City, Vietnam. The Vietnamese subsidiary serves as a sales and technical support hub for Southeast Asia, enhancing customer proximity support such as inquiries, installation, and after-sales service.

In November last year, DN Solutions opened a European Technical Center in Dormagen, Germany, expanding its sales and technical support capabilities. The European Technical Center features an exhibition space where customers can see advanced machine tools such as 5-axis and multi-tasking machines and automation solutions, as well as parts repair and sales services.

To satisfy core customers distributed across various industries and regions worldwide, DN Solutions is also expanding its R&D workforce domestically and internationally. The Bengaluru R&D center is expected to accelerate the expansion of advanced manufacturing solutions and high-end product lines, fostered by digital transformation (DT) and artificial intelligence (AI), supporting the company's technological superiority over competitors. Bengaluru is rich in high-level science and engineering talent and hosts large-scale R&D centers operated by major global companies.

Additionally, DN Solutions is steadily increasing R&D personnel at its Seoul office and Changwon headquarters. It plans to establish a European R&D center in Germany, which boasts world-class engineering capabilities, to strengthen new product development and digitalization.

Machine tools refer to machines used to manufacture other machines. Also known as Mother Machines, they shape workpieces into required forms by cutting, grinding, or drilling metals or other materials using cutting tools.