Sundram Fasteners sets up base in China

Sundram Fasteners Ltd (SFL), a TVS group company, opened its first offshore facility in Haiyan county of China today.

Sundram Fasteners (Zhejiang) Ltd, a 100 per cent subsidiary of SFL, has been set up with an investment of $5 million and with plans to invest up to $2.5 million.

The opening also marks a first for the Indian engineering industry, with the setting up a manufacturing base in China. SFL, which signed a memorandum of understanding with the Haiyan Country on March 1, 2003, had some anxious moments following the outbreak of Sars.

However, the 6000 metric tonne factory was built in 14 months to open on schedule.

The factory will make high tensile fasteners and will also be an export base besides serving the Chinese automotive industry. The facility is slated to contribute 25 per cent of the company's gobal exports.

This step into China is another footprint in SFL's move towards globalisation. Last year, the company picked up Dana Spicer's Cramlington Precision Forge, UK.

The acquisition of Autolec, which is touted to be South Asia's largest maker of water pumps, was also another step towards becoming a global player.

SFL today informed the Bombay Stock Exchange that it is convening a board meeting on May 28 to consider the allotment of equity shares of Re 1 each to shareholder of TVS Autolec Ltd, consequent to amalgamation.