Ludhiana, July 28: An international manufacturing partnership between Vardhman Special Steels and Japan’s Aichi Steel officially commenced construction in Ludhiana on Monday as Chief Minister Bhagwant Singh Mann laid the foundation stone for a ₹1,116 crore production facility. The project represents a significant shift toward precision automotive component manufacturing within the region.
The project originated during a state delegation visit to Japan in December 2025, where an initial agreement worth ₹500 crore was explored. Following further evaluation of the state’s industrial framework, the investor group increased the overall capital commitment to ₹1,116 crore. The facility will directly absorb 500 workers into its initial workforce, with capacity expansions planned to support up to 2,000 workers over time.
At the launch event, Chief Minister Bhagwant Singh Mann pointed to the rapid transition from initial negotiations to on-ground execution as evidence of effective governance.
“During our visit to Japan in December 2025, we met the leadership of Aichi Steel in Nagoya,” CM Bhagwant Singh Mann stated. “At that time, Vardhman and Aichi Steel signed an MoU to explore setting up a new manufacturing facility in Punjab with an investment potential of around ₹500 crore. Today, within a few months, that MoU has transformed into a real project. This is the true meaning of translating policy into practice and commitment into reality. The total planned investment across two phases is around ₹1,100 crore.”
The Chief Minister maintained that streamlined regulatory frameworks under the state’s industrial policy have significantly reduced turn-around times for new commercial enterprises.
“Punjab has established a unique system of one office, one portal, ‘Single Window-Single Pen’, and single-point responsibility,” CM Bhagwant Singh Mann asserted. “‘Invest Punjab’ serves as the single point of contact for investors from the first discussion to approvals, construction, production and future expansion. Through the Fast Track Punjab Portal, investors can apply, pay fees and track approvals online. The portal integrates more than 200 business services and nearly 50 major regulatory clearances.”
Mann further declared that major domestic and international corporations are increasingly choosing Punjab for large-scale production setups.
“Tata Steel has already established its second-largest plant after Jamshedpur in Punjab with an investment of ₹3,200 crore,” CM Bhagwant Singh Mann declared. “It is also a matter of immense pride that leading companies such as Sanatan Textiles, Nestlé, CLAAS, Freudenberg, Cargill, Verbio and Danone have started operations in the state. Due to the pro-industry policies of the state government, several industries from other states have shifted their operations to Punjab over the last four years.”
