Sundaram-Clayton Ltd, a TVS Group company, Friday said its first overseas auto-component manufacturing facility in the United States has commenced operations.
The facility, set up at a project cost of Rs 630 crore (USD 90 million), would make Sundaram-Clayton Ltd (SCL) a global player.
It would produce 1,000 tonnes of castings in the first year which could be scaled up to 10,000 tonnes in five years.
SCL would manufacture a range of high-pressure die-cast and gravity die-cast parts at the unit.
The plant has been set up on a 50 acre land in Dorchester County in Ridgeville Industrial Park, South Carolina.
The facility would supply auto-components for vehicles from two-wheelers to large trucks to major global players.
"The long-term outlook for both the American and the Indian automotive industries are strong. OEM vehicle makers are focused on light-weighting and better fuel economy," company Joint Managing Director Lakshmi Venu said.
"Our strategy of expanding in both these markets enable us to support our customers with a more responsive supply chain in an increasingly dynamic world," she said.
South Carolina governor Henry McMaster, who inaugurated the facility, 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."