CHENNAI, INDIA -- Avalon Technologies, an electronics manufacturing services provider and a wholly owned subsidiary of U.S.-based Sienna Corp., will break ground this week on a facility outside the Madras Export Processing Zone.

The company is also close to acquiring EMS businesses in India, Japan and the U.S., according to a news report.

The new plant, which was announced last July, should be online within 12 months, the company chairman told reporters. "We will be concentrating more on industrial electronics and telecommunications sector in the Indian market."

The new project is estimated to cost $3 million and employ close to 300 people. Currently, Avalon employs mroe than 400 workers in Chennai.

Avalon operates three manufacturing facilities in the MEPZ. Parent company Sienna has plants in Fremont, CA; Charlotte, NC; and Bangalore, and supplies to Tyco, GE and Mitsubishi, among others.

Avalon builds turnkey products, PC assembly, components, cable assemblies and plastics.