7/26/2011 10:55:00 AM
NEWS BRIEFS
Sundram Fasteners Defends China Expansion As Profit Rises
(l-r) Bai Xuezhu, Director of Research, China Executive Leadership Academy, Pudong; T.T. Ashok, chairman, CII Southern Region; N. N. Sundradevan, Principal Industries Secretary; and Sampathkumar Moorthy, Sundram Fasteners executive director (courtesy The Hindu)
Citing the rise of the global economy, with its growing interest in Asia, Sundram Fasteners defended its decision to open a manufacturing facility in China in 2005.
Sundram Fasteners executive director Sampathkumar Moorthy told The Hindu that as global economic gravity was shifting towards India and China, it made good business sense to set up a unit in China and synergize it with Indian operations.
“China and India are becoming the manufacturing hubs of the world,” Moorthy stated. “Buyers in Europe and the U.S. have now the option to buy from our plants in China or India. Our unit in China has started making profits from the fifth year and it is growing.”
During the height of the global recession, Sundram Fasteners cut production to 50% capacity at its Zhejiang, China, facility, which manufactures high tensile fasteners and bearing housings and supplies.
But business conditions have improved in the past year.
Bai Xuezhu, Director of Research at the China Executive Leadership Academy in Pudong, told The Hindu that China was likely to maintain relatively a higher growth in the next 10 to 15 years due to factors such as large population, regional disparity, market mechanism, political incentives, urbanization, service and facilities. ©2011 GlobalFastenerNews.com
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