US-based Sanmina plans $50mn unit in Chennai

Sanmina-SCI Corporation, a US-based electronics manufacturing services company, has chosen Oragadam near Chennai to set up a manufacturing technology campus with an initial investment of $50 million. 

The Nasdaq-listed company signed a memorandum of understanding (MoU) with the Tamil Nadu government in the presence of Chief Minister M Karunanidhi on Tuesday. According to a government release, total investment in the project is expected to touch Rs 315 crore.

Sanmina-SCI's manufacturing facility will come up on a 100-acre campus at the Oragadam Hi-tech Special Economic Zone, which has just received formal approval from the central government. Sanmina will be the first company to establish operations in the 350-acre Oragadam Hi-tech SEZ. The manufacturing campus is expected to commence commercial operations within a year. The Oragadam campus will start with assembly of PCBs and ramp up operations through high technology transfers.

In the initial years, the campus may generate direct job opportunities for 1,300-1,500 people and indirectly for 2,600-10,000 people through supplier development and other services. In the long term, over a period of five years, it will create job opportunities for 5,000-10,000 people directly and 10,000-20,000 people indirectly, said Hari Pillai, president of global EMS operations, Sanmina-SCI.

He said the company had proposed to set up its manufacturing base near Chennai as it supported its regional customer requirements and would help address growing domestic demand. "Chennai was chosen due to its strong infrastructure, availability of skilled workforce and customer presence," he added.

The $11-billion Sanmina-SCI has manufacturing facilities in 19 countries and employs about 50,000 people.