Automotive component maker Sundaram-Clayton Ltd. will set up a Rs 350-crore high-pressure die- and gravity-cast parts in the US as part of its Rs 750-crore expansion plan, a top company official said here on Thursday.
The company will invest Rs 400 crore in its Indian plants for increasing its production capacity by 10,000 tonnes to 70,000 tonnes per annum in three years.
Speaking about the US investment plans, Lakshmi Venu, Joint Managing Director, told reporters: "The United States is a strategically important market for us. Over the years, we have built strong partnerships with global original equipment manufacturers in the region and have decided to set up a state-of-the-art facility in the United States to better support our customers there."
Sundaram-Clayton will set up its first overseas facility with a capacity of 10,000 tonnes per annum in five years.
The facility will be located in Dorchester county, South Carolina. The company has acquired 50 acres of land there.
Construction at the site is expected to begin by April 2017, and the first production line would be ready for a rollout by the end of 2018.
According to Venu, the investment will be funded through a mix of equity and debt.
--IANS
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