TVS Group's Sundaram-Clayton goes global by opening manufacturing facility in USDevdiscourse News Desk | Chennai | Updated: 17-05-2019 19:43 IST | Created: 17-05-2019 19:30 IST
On Friday, Sundaram-Clayton Ltd, a TVS Group company said its first overseas auto-component manufacturing facility in the United States has commenced operations. The facility, set up at a project cost of Rs 630 crore (USD 90 million), would make Sundaram-Clayton Ltd (SCL) a global player.
It would produce 1,000 tonnes of castings in the first year which could be scaled up to 10,000 tonnes in five years. SCL would manufacture a range of high-pressure die-cast and gravity die-cast parts at the unit.
The plant has been set up on a 50 acre land in Dorchester County in Ridgeville Industrial Park, South Carolina. The facility would supply auto-components for vehicles from two-wheelers to large trucks to major global players.
"The long-term outlook for both the American and the Indian automotive industries are strong. OEM vehicle makers are focused on light-weighting and better fuel economy," company Joint Managing Director Lakshmi Venu said. "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 said.
South Carolina governor Henry McMaster, who inaugurated the facility, said, "Our State is leading the way in economic development, and the fact that Sundaram-Clayton is already announcing additional jobs is another testament to that." "This (facility by SCL) is a big win for Dorchester County and the entire state, and we are excited to see what the future has in store for this great company..," he said. The United States Department of Commerce and its trade promotion arm, the US Commercial Services in Chennai, played a key role in facilitating the project.
According to SCL, US is the biggest export market for SCL constituting 60 per cent generating 40 per cent revenue. Such an onshore facility would enable SCL to sharply reduce delivery lead times, giving it a competitive advantage in an increasingly demanding market for automotive components.
SCL recently set up an additional manufacturing unit at Oragadam near here to serve automobile companies. Sundaram-Clayton Ltd clocked revenues of Rs 1,932.94 crore during FY18-19 and has four manufacturing facilities in India besides the one in the US.