Korea’s DN Solutions opens Rs 6 bn machine tools facility in Bengaluru

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Korea’s DN Solutions opens Rs 6 bn machine tools facility in Bengaluru

Korea’s DN Solutions opens Rs 6 bn machine tools facility in Bengaluru

Industry News
Sep 03,26

Bengaluru becomes company’s first overseas plant outside China in two decades. Investment expected to create local employment across R&D, application engineering and skilled manufacturing operations.

Bengaluru

DN Solutions, Korea’s leading machine tool manufacturer and one of the world’s leading machine tool builders, on August 26, 2026, inaugurated its first manufacturing plant in India at the Bengaluru ITIR Industrial Area in Karnataka. This marks the company’s first overseas manufacturing investment since establishing its Yantai plant in China in 2003. The first manufacturing plant in India reflects DN Solutions’ commitment to positioning India as a strategic pillar of its long-term growth strategy and global supply chain network.

DN Solutions has fully deployed its Phase 1 investment commitment of Rs 6 billion (approximately $ 62 million). The company is considering further investments of a similar scale in future phases, subject to market demand and business growth.

The 25-acre facility, developed with the Karnataka Industrial Areas Development Board (KIADB), will integrate R&D, manufacturing, a technical centre and after-sales service. The facility will initially produce SVM vertical machining centres and LYNX/LEO horizontal turning centres, with five-axis machine production planned for later phases. DN Solutions has steadily expanded its Indian operations over the past 32 years, beginning with its first sales in India in 1994, followed by the establishment of its Bengaluru Technical Centre in 2008 and its Indian subsidiary in 2016.

The company emphasised that the Bengaluru plant is not a relocation of manufacturing sites from Korea or China, but a completely new investment designed to create additional production capacity in India. The company views India as a strategic market with a rapidly growing domestic economy, abundant engineering talent, a young population, a large English-speaking workforce and increasing manufacturing investments under the government’s Make in India initiative. According to the company, Karnataka, and Bengaluru in particular, offers India’s most competitive industrial ecosystem in precision manufacturing, automation, engineering talent and supply chain capabilities.

Wonjong Kim, CEO of DN Solutions, said, “We’ve been deeply committed to the Indian market for more than a generation, and as a result we’ve achieved one of the highest market shares among global machine tool companies. We will continue investing in India for the long term. India clearly has the potential to become a global manufacturing powerhouse. Its large and expanding domestic market, English-speaking workforce, outstanding engineering talent and young demographic profile are the foundations of its long-term competency.”

Commenting on AI and manufacturing, he stated, “As AI expands beyond digital screens into the physical world, machines become indispensable. At the centre of that transformation phase are machine tools, serving as a core platform for Physical AI. Bengaluru has a strong software ecosystem, which uniquely positions it to lead manufacturing in the Physical AI era. That is why we chose Bengaluru.”

The Bengaluru plant has been designed to support all four key value chains of the machine tool industry: R&D, manufacturing, service and training.

The plant will initially develop and manufacture products specially tailored to the Indian market, including the popular SVM series vertical machining centre and LYNX and LEO series horizontal turning centres. Production of high-end machines such as five-axis machines is also being considered for future phases.

The R&D Centre will work closely with four existing research institutes located in Korea, Germany and China, as well as solution specialists at technical centres across Asia, Europe and the Americas. Together, they will develop products, solutions and applications addressing the requirements of various industries.

The Technical Centre being established alongside the plant will enable customers to experience machine performance through test cuts and identify optimised machining solutions for their manufacturing needs.

The Service Office, Repair Shop, Parts Warehouse and DN Academy will enhance the speed and responsiveness of after-sales support while further strengthening field service engineering expertise. DN Solutions expects customers to reduce downtime, improve operational efficiency and maximise productivity.

In supply chain development, DN Solutions is pursuing a localisation strategy focused on nurturing Indian suppliers and micro, small and medium enterprises (MSMEs), rather than relocating existing suppliers from Korea or China.

The company has already begun supporting several local MSMEs through technical collaboration and capability-building initiatives and plans to launch a formal supplier development programme in 2027.

Regarding localisation, DN Solutions has already achieved approximately 80 per cent by parts count and aims to source most components within India over the next five years, except for spindle assemblies.

“We have already localised large-part machining, key machined components and shaft-related parts in India,” Kim said. “Our goal is to build a truly local manufacturing ecosystem that creates significant value within the country.”

The investment is also expected to create significant local employment opportunities. DN Solutions currently employs 240 people directly in India, while the broader employment impact, including suppliers, logistics providers and service providers, is estimated to be at least twice that figure.

Over the past year, the company has recruited approximately 100 recent graduates and operates its own training centre along with a one-year talent development programme. DN Solutions also plans to collaborate with customers, MSMEs and local educational institutions to develop application engineers, technicians and machining specialists.

“Talent is not just developed through lectures,” Kim stated. “As technology evolves, continuous upskilling and reskilling in industries are necessary. Beginning with direct employment of 500 people, we intend to contribute to the development of a much larger talent pipeline through workforce training for customers and MSMEs, as well as partnerships with local educational institutions.”

DN Solutions expressed its sincere appreciation to the Government of Karnataka and KIADB for their support throughout the project and reaffirmed its commitment to developing the Bengaluru facility into a strategic hub integrating manufacturing, R&D, supply chain development and talent cultivation.

“Even while the plant was under construction, we were able to recruit local talent and identify supply chain partners,” Kim said. “It is extremely rare for a manufacturing facility to have both its workforce and supply chain ecosystem in place before the plant is completed. We built the facility according to plan, obtained approvals through a predictable process and secured the talent we needed locally. We sincerely thank the Government of Karnataka and all related organisations for their partnership over the past two years.”