South Korean machine tool major DN Solutions has opened its first manufacturing plant in India, committing Rs. 600 crore (about $62 million) to a new 25-acre facility in Bengaluru as it positions India as a key pillar of its global growth and supply-chain strategy.

 

The Bengaluru plant, located in the Bengaluru ITIR Industrial Area of Karnataka, is DN Solutions’ first overseas manufacturing investment since the company established its Yantai plant in China in 2003.

 

The company said it is considering additional investments of a similar scale in future phases, depending on market demand and business growth.

 

The facility, developed with the Karnataka Industrial Areas Development Board (KIADB), brings manufacturing, research and development, technical support and after-sales service under one roof. It will initially produce SVM vertical machining centers and LYNX and LEO horizontal turning centers, with production of high-end five-axis machines planned for later phases.

 

DN Solutions said the Bengaluru investment is entirely new capacity and does not involve shifting production from Korea or China.

 

“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," Wonjong Kim, CEO of DN Solutions, said.

 

Kim said India’s expanding economy, engineering talent and young workforce give the country the ingredients to become a major global manufacturing base.

 

“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.”

 

DN Solutions is also betting on Bengaluru’s technology ecosystem as manufacturing becomes increasingly intertwined with artificial intelligence and automation.

 

“As AI expands beyond digital screens into the physical world, machines become indispensable. At the center 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 company said Karnataka offers one of India’s strongest ecosystems for precision manufacturing, automation, engineering talent and supply-chain development.

 

The Bengaluru facility is designed to cover four critical areas of the machine-tool value chain: R&D, manufacturing, service and training.

 

Its R&D center will work with DN Solutions’ existing research institutes in Korea, Germany and China, as well as technical specialists across Asia, Europe and the Americas, to develop machines, applications and solutions for different industries.

 

A technical center at the plant will allow customers to conduct test cuts and evaluate machining solutions before deployment.

 

The facility will also house a service office, repair shop, parts warehouse and DN Academy, aimed at accelerating after-sales support and developing field-service expertise.

 

The company is making localization a central part of its India strategy, with a focus on developing Indian suppliers and micro, small and medium enterprises (MSMEs) rather than transferring suppliers from Korea or China.

 

DN Solutions said it has already achieved about 80% localization by parts count and aims to source most components domestically within the next five years, with spindle assemblies remaining an exception.

 

“We have already localized 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 company has already begun technical collaboration and capability-building initiatives with local MSMEs and plans to launch a formal supplier-development programme in 2027.

 

The investment is also expected to create a significant employment and skills-development ecosystem.

 

DN Solutions currently directly employs 240 people in India. Including suppliers, logistics companies and service providers, the broader employment impact is estimated to be at least twice that number.

 

The company has recruited around 100 recent graduates over the past year and operates its own training center and a one-year talent-development programme.

 

It plans to work with customers, MSMEs and 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’ India presence stretches back more than three decades. The company began selling in the Indian market in 1994, opened its Bengaluru Technical Center in 2008 and established its Indian subsidiary in 2016.

 

The new plant marks the biggest step yet in that expansion, turning India from a major sales market into a manufacturing and technology base within DN Solutions’ global network.