Sona Group to set up $10 mn unit in US

Auto component major Sona Group today said it will make an initial investment of $10 million to set up a gear manufacturing facility in the US. 

"The investment will be made by our joint venture company - Sona Okegawa Precision Forgings and the plant will have a capacity of 5 million units per annum," Surinder Kapur, chairman & MD of  Sona Group, said today on the sidelines of a CII conference.

Sona Okegawa is a joint venture between the Sona Group and Japan's Mitsubishi Materials, in which the former holds a majority stake of 60%.

"The North American automotive market is growing and we want to be a significant player in that space...North and South America also offer very lucrative incentives for setting up facilities, he said.

The company is in talks with a few states in the US to establish the plant, which is likely to come up in the next one year, he said. 

Commenting on funding for the project, Kapur said the group used a lot of its own resources, besides the willingness of private equity investors.