Sundaram Clayton expands manufacturing capacity with new die-casting facility

Sundaram Clayton Limited (SCL) has started operations at its new die-casting facility in Thervoy Kandigai near Chennai, Tamil Nadu, while simultaneously expanding its U.S. operations with a 4,400-ton die-casting machine. The company announced these developments along with its quarterly results on January 31, 2025.

The Chennai facility will produce aluminium die-cast components for automotive applications, including engine parts and structural elements for electric vehicles. The plant incorporates digital manufacturing capabilities and aims to serve both domestic and international markets.

The company reported improvement in its financial performance, with standalone EBITDA reaching 14.7%, up by 1.3% quarter-on-quarter. The consolidated EBITDA showed an increase of 4.4%, reaching 7.8% compared to the previous quarter.

SCL, established in 1962, has maintained a significant presence in the automotive components sector, with exports accounting for more than half of its revenue. The company supplies to markets across North America, Europe, and India, serving both commercial and passenger vehicle manufacturers.

The automotive component manufacturer has been expanding its global footprint over the years. The recent commissioning of the new die-casting machine in its U.S. facility is expected to enhance its capability to serve the North American market with additional product lines.

The global automotive components industry has been evolving with increased demand for lightweight solutions, particularly driven by the growth in electric vehicle production. SCL's new facilities are positioned to address these market requirements through its die-casting expertise.

These developments come at a time when the automotive industry is experiencing significant transformation, with manufacturers worldwide focusing on sustainable technologies and lightweight materials to improve vehicle efficiency and reduce environmental impact.