Sundaram-Clayton's Rs 630 cr US plant to make it global player
Friday - May 17, 2019 8:18 pm , Category : BUSINESS
Chennai, May 17 (IANS) The TVS Group's Sundaram-Clayton Ltd (SCL) on Friday said its Rs 630 crore US plant will establish the company as a global die-casting player from India.The company announced the inauguration of its first overseas facility in South Carolina, US, set up through its subsidiaries to serve the North American market.In a statement issued here, SCL said the US market currently represents about 60 per cent of its exports and 40 per cent of its revenues.An onshore presence will enable SCL to sharply reduce delivery lead times, giving it a competitive advantage in an increasingly demanding market for automotive components, the statement said.The US facility has been built with a project investment of Rs 630 crore ($90 million) and will produce 1,000 tonnes of castings in the first year of production and in five years, will scale up its output to 10,000 tonnes.According to the statement, SCL will manufacture a range of high-pressure die-cast and gravity die-cast parts in this facility."The long term outlook for both the American and the Indian automotive industries is strong. In both markets, OEM (original equipment manufacturers) vehicle makers are focussed on light-weighting and better fuel economy. Our technologies are aimed at supporting this industry trend," Lakshmi Venu, Joint Managing Director, was quoted as saying in the statement."Our strategy of expanding in both these markets enables us to support our customers with a more responsive supply chain in an increasingly dynamic world," she added.Apart from its US facility, SCL has also invested recently in a new plant in Oragadam near here.