Sundaram-Clayton sets up U.S. unit

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Facility will produce 1,000 tonnes of castings in first year

Sundaram-Clayton Limited (SCL), a member of the TVS group, has announced the setting up of a facility in South Carolina. The U.S. facility is set up through its subsidiaries.

The venture involves an investment outlay of $90 million. The facility will produce 1,000 tonnes of castings in the first year of operation. In five years, the output will scale up to 10,000 tonnes. The unit will make a range of high-pressure die-cast and gravity die-cast parts. South Carolina is among the fastest growing automotive and manufacturing hubs in the U.S. The SCL facility is built on 50 acres in Dorchester County in the Ridgeville Industrial Park, South Carolina.

The setting up of a unit in the U.S. will significantly enhance the ability of SCL to serve its customers in North America, its biggest export market. Significantly enough, The oversea foray will also help establish SCL as a global player from India. The facility, which has already been inaugurated, will go commercial by September. “The U.S. market represents about 60% of our exports and 40% of revenues. An on-shore presence will enable us to sharply reduce delivery lead time, giving us a competitive advantage in an increasingly demanding market for automotive components,” a company statement said.

“The long-term outlook for both the American and the Indian automotive industries is strong. In both markets, OEM [original equipment manufacturer] 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,” said Lakshmi Venu, joint MD, SCL.

Governor of South Carolina Henry McMaster inaugurated the SCL plant. “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 is a big win for Dorchester County and the entire state,” a release quoted Mr. McMaster as saying.

Sundaram Clayton has a revenue of ₹ 1,932.94 crore . It has five manufacturing facilities – four in India and the one in South Carolina.

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