Sundaram-Clayton opens $90-million factory in US

Our Bureau Chennai | Updated on August 16, 2019 Published on May 17, 2019

Lakshmi Venu, Joint Managing Director, Sundaram-Clayton Ltd   -  Bijoy Ghosh

Sundaram-Clayton Ltd has announced the inauguration of its first overseas facility in South Carolina, US, set up at an investment of $90 million to serve its customers in North America, its biggest export market.

The facility has been built on 50 acres in Dorchester County in the Ridgeville Industrial Park, South Carolina, which is among the fastest growing automotive and manufacturing hubs in the US.

The US unit will produce 1,000 tonnes of castings in the first year of production and in five years, will scale output to 10,000 tonnes. The company will manufacture a range of high-pressure die-cast and gravity die-cast parts in this facility. The operations will commence by September this year. This expansion is expected to establish Sundaram-Clayton as a global player from India.

“The long-term outlook for both the American and the Indian automotive industries is strong. In both markets, OEM vehicle makers are focussed on light-weighting and better fuel economy.

“Our technologies are aimed at supporting this industry trend. 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,” Lakshmi Venu, Joint Managing Director, Sundaram-Clayton Ltd, said in a statement.

The US market currently represents about 60 per cent of the company’s exports and 40 per cent of its revenues.

An on-shore presence will help SCL cut delivery lead times, giving it a competitive advantage in an increasingly demanding market for automotive components.

Published on May 17, 2019
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