Sundaram-Clayton Limited (SCL), a leading supplier of automotive aluminium die castings, is heading to the US, with an investment of about ₹350 crore.
The TVS Group company will invest $50 million in South Carolina’s Dorchester County to create 10,000 tonnes of capacity over five years. SCL has acquired 50 acres to site the factory, which will make high-pressure die cast and gravity cast parts.
“The decision to set up the US plant has been taken to support our customers in the region with a shorter supply chain and improved responsiveness to their requirements,” said Lakshmi Venu, Joint Managing Director, SCL.
At present, the US accounts for about 60 per cent of the company’s exports and 40 per cent of its revenues.
At home, SCL plans to spend ₹400 crore to expand capacity across its four manufacturing units over the next three years from 60,000 tonnes to 70,000 tonnes. SCL is operating at almost full capacity now.
“Over the past five years, we invested ₹408 crore. The new investment is to support our customers and future demand as we are very bullish on India. The expansion will be funded through a combination of equity and debt,” said Lakshmi Venu.