Chennai, May 9 (IANS): CX Precision Mechanical (India), part of the Rs.900-crore-turnover Chunxing Group of China, will set up a die-castings unit at Sri City Special Economic Zone (SEZ) in Andhra Pradesh at an outlay of Rs.40 crore, a senior official said.

The plant, around 80 km from here, is expected to go on floors from October.

"The plant is expected to go on stream this October with construction getting over a month earlier. We are now catering to Nokia Siemens Networks and Sanmina-SCI located in Tamil Nadu out of China. With our plant at Sri City we will be supplying them locally," R.N. Kannan, CX Precision general manager told IANS.

According to him, the Chinese company is doing business worth around Rs.70 crore in India which is expected to go up in the future.

"In the first phase, we will be investing around Rs.40 crore. Based on the business, we will decide on further investments. Our plan is to invest around Rs.100 crore to cater to overseas market out of here in the long term," Kannan said.

Chunxing is a leading manufacturer of die castings and other products mainly catering to telecom, automotive, electronics, medical and aviation industries.

Kannan said the Indian company would be employing around 300 people when the plant goes on stream.

According to Ravindra Sannareddy, managing director, Sri City, the SEZ has companies from over 22 countries ranging from the US to Japan and around five more companies are expected to set up their production base at Sri City within the next six months.