Sundaram Clayton may supply magnesium castings for premium cars

Aluminium die-casting supplier, Sundaram Clayton limited (SCL) is considering with the idea of manufacturing magnesium castings for premium passenger cars. Trial production for this technology is slated to take place at the company’s Padi plant in Chennai.

SCL will import raw materials from Australia and Europe and a small capacity of 1,000 tonnes is expected to be produced by 2013. These magnesium die-casts will be used in engines, hoses and other cable cases. SCL has traditionally been a producer of aluminium die-casts and according to P H Narayanan, president, SCL, the market for magnesium die-casts has existed in Europe for quite some time. “Most premium brands like BMW, Audi and Mercedes use magnesium die-casts for their cars,” he said. “The main advantage of using magnesium die-casts is the reduction in weight,” he added.

SCL is also building a new facility in Oragadam, near Chennai. Installation of machinery and other equipment will begin in January 2012 and the 100,000 sq feet facility will become operational by April 2012. The company imports a major chunk of its raw material – aluminium – in both its virgin version and as an alloy from Thailand and China. The recent rise in exports “has almost leveled out the increase in import costs due to the weakening of the rupee,” Narayanan added. Around 20-25 percent of SCL’s output goes to TVS Motors.

SCL is expected to cross a turnover of Rs 1,000 crore by the end of 2011-12 with 30 percent of revenues coming from exports. The last three years has seen a doubling of turnover as a result of orders from Cummins worldwide and Daimler in India. “The recent slowdown hasn’t affected us because we supply to base or essential models on a global level and these are doing well,” Narayanan said.