Sundaram-Clayton opens first overseas plant in US

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Published: May 18, 2019 12:30:41 AM

Sundaram-Clayton (SCL), India's leading auto component maker and the holding company of TVS Motor Company, on Friday announced the inauguration of its first overseas facility in South Carolina, US, through its subsidiaries.

The company aims to significantly enhance its ability to serve its customers in North America, its biggest export market. (Website image)The company aims to significantly enhance its ability to serve its customers in North America, its biggest export market. (Website image)

Sundaram-Clayton (SCL), India’s leading auto component maker and the holding company of TVS Motor Company, on Friday announced the inauguration of its first overseas facility in South Carolina, US, through its subsidiaries. The company aims to significantly enhance its ability to serve its customers in North America, its biggest export market. This expansion will establish SCL as a global player from India. The operations will commence by September 2019.

The US facility has been built with a project investment of $90 million. It will produce 1,000 tonne of castings in the first year of production and in five years, will scale the output to 10,000 tonne. SCL will manufacture a range of high-pressure die-cast and gravity die-cast parts in this facility. South Carolina is among the fastest growing automotive and manufacturing hubs in the US. SCL’s overseas facility is built on 50 acres of land in Dorchester County in the Ridgeville Industrial Park, South Carolina.

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The US market currently represents about 60% of the company’s exports and 40% of its revenues. An on-shore presence will enable SCL to sharply reduce delivery lead times, giving it a competitive advantage in an increasingly demanding market for automotive components, a press statement said.

The US Department of Commerce and its trade promotion arm, the US Commercial Services in Chennai, played a key role in facilitating this project.

Lakshmi Venu, joint managing director, Sundaram-Clayton, while articulating the company strategy, said, “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.”

Governor of South Carolina Henry McMaster, after inaugurating the SCL plant 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 is a big win for Dorchester County and the entire state, and we’re excited to see what the future has in store for this great company and we wish them years of continued success.”

Apart from its US facility, SCL has also invested recently in a new plant in Tamil Nadu. The company is positive on the long-term strength of its core Indian market as well, and recently opened an additional plant in Oragadam, near Chennai, to service its Indian automotive customers.

Sundaram-Clayton is a part of the conglomerate TVS Group, which was established in 1911 in India and has companies worldwide. TVS group’s revenue was $8.5 billion in fiscal 2018. Sundaram-Clayton and its subsidiaries’ revenue stood at `21,575.64 crore in fiscal 2019. This includes India’s third-largest two-wheeler maker TVS Motor Company, its die-casting and plastics divisions.

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