Sundaram Clayton will supply aluminium die-castings to Volvo for its North American commercial vehicle operations.
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Sundaram Clayton is a TVS group company scheduled to supply 30,000 castings from April 2005. SCL has been very aggressive on the exports front and has been making breakthroughs in the global commercial vehicle sector.
Sundaram Clayton is also in talks with Mack Trucks of the US for the supply of similar die-castings and discussions are reported to be in the final stages. Last year, the company received an order to supply castings to Cummins, also in the US.
With the increase in export orders, Sundaram Clayton is now looking at boosting its foundry capacity. SCL currently has a capacity of 18,000 units per annum, which would be increased to about 30,000. An investment of INR650 million (€12.26 million) has been earmarked for this capacity expansion, which is to be completed by 2005-06.
The Padi facility, near Chennai, would be completely dedicated for foundry operations and the air brake system operations will be shifted to a new facility near Chennai. The company’s operational focus is also shifting more towards castings from its air brake systems.
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By GlobalDataDeepesh Rathore / Tilak Swarup
