9/10/2009
NEWS BRIEFS
Sundram Slashes China Capacity

The global recession has forced Sundram Fasteners China in Zhejiang to work at 50% capacity, the Hindu Business Line reports.

While not the only first major overseas operations of Sundram, the China business has reportedly consumed the highest investment – Rs 56.87 crore (US$13 million).

Shrinking markets and a strong Remnimbi “have delayed Sundram Fasteners achieving breakeven in its China operations,” which manufactures high tensile fasteners and bearing housings and supplies, the Hindu reports.

Since the founding of its China business in 2005, the dollar has declined 17% to RMB 6.85.

Despite strong sales during the initial months of operations, slumping revenue has eroded profits by as much as 29%.

On other fronts, Sundram is finding success by jumping into the aerospace fastener sector, though full penetration is likely to take two years or more.

“Our aim is to make fasteners for all metal moving industries,” stated V.G. Jaganathan, president of finance for Sundram.

Sundram Fasteners is reportedly in talks with Airbus Industries and GE about potential contracts. If successful, Sundram will likely set up a new plant to produce aerospace fasteners.

Chennai, India-headquartered Sundram has plants in five countries. Sales for 2008 totaled Rs 1,626 crore (US$405 million). ©2009 GlobalFastenerNews.com

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