SSS Springs announces JV with South Korea’s Daewon for seating systems production

SSS Spring and Daewon enter a joint venture to set up a production facility of advanced seating systems. An investment of 170 crore will be made in two phases over a course of four years.

By:October 28, 2021 8:19 AM
SSS Springs

 

SSS Springs, one of the country’s  biggest spring manufacturers, on Wednesday announced the setting up of an advanced seating systems manufacturing facility in Chennai, jointly with Daewon, world’s leading automobile seating manufacturer from South Korea.

Both the partners will be investing around `170 crore in two phases spanning around over three to four years. SSS Springs has multiple manufacturing plants in Chennai. The joint venture is Daewon’s debut into India’s seat module manufacturing space. The new JV is a 60:40 equity partnership between SSS Springs and Daewon.

The  plant at Sriperumbudur in Chennai, spread over 30,000 square feet, in the first phase, has bagged a significant order from a global transportation major, to supply seating systems for India’s metro projects.

Satish Machani, chairman and MD, SSS Springs, told FE the JV has invested `20 crore in the first phase and will be investing another `150 crore in the second phase. He said the JV with Daewon is to anchor our entry into seat modules for the high-growth metro and railway sector in India, and automotive thereafter. In the next 10 years, India will be building the largest number of metros in the world, with over 50 cities from the current 10 cities with metro.

“The JV will be addressing a market valued at $1.6 billion plus per annum. The SSS Springs-Daewon JV marks the consummation of several years of partnering in the auto-components space,” he said.

The joint-venture is expected to cater to the strong business opportunity, resulting from the increased focus on metro transportation.  The advanced seating systems will be a key requirement in the near future. Seating systems will also be needed by luxury bus manufacturers, carmakers. Besides serving the domestic market, the JV is expected to offer products for exports in the coming years.

Daewon director, Herbert Kim told FE, “We were looking to translate our global leadership in the seat’s module business across rail & automotive segments to a sustainable long-term strategy for India. The JV will bring the latest technologies in terms of light weighting, design, ergonomics, safety and high-speed to the Indian market.”

The Bengaluru-based SSS Springs is touted to be India’s largest spring manufacturer with 14 manufacturing facilities, including one in the US. The company offers its products to over 200 original equipment manufacturers (OEMs) in the automotive industry. Customers include Toyota, Honda, Suzuki, Hyundai, Daimler, Bosch, and other reputed brands. SSS Springs already has 4 international JV’s with reputed companies with the aim to bring the latest technology and knowledge to India.

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