STEELGURU
Iron ore shortage unlikely to trigger shift to aluminum castings
Edited by : AL CIRCLE
2 min read
Sundaram Clayton does not see the short supply of iron ore triggering a major shift from iron castings to aluminum castings, given the high cost differential.
Mr CN Prasad Group President and CEO of Sundaram Clayton said that “It may happen to some extent, but iron ore shortage will not be the primary driver for increased uptake in aluminum castings due to the high cost differential between iron and aluminum castings.”
Mr Prasad said that iron ore shortage is a result of the mining ban in Karnataka, following instances of illegal mining in the State. Replacing cast iron parts with aluminum also means redesigning the vehicle, thus adding to the costs.
He said that Sundaram Clayton sees opportunities in tighter emission norms for passenger cars and trucks. Aluminum castings make the vehicle lighter, leading to lesser fuel consumption. After US and Europe, the trend is being seen in India too.
Mr Venu Srinivasan MD of Sundaram Clayton said that the company is eyeing a turnover of INR 1,000 crore this year despite the slowdown in the auto industry. Mr Srinivasan sees investments made in new products producing results going forward.
He said that Sundaram Clayton's new plant in Oragadam, near Chennai, will start trial production in January 2012. Around INR 80 crore will be invested in this plant which will cater to export markets. The company will also pump in INR 40 crore to expand capacity at its plant in Padi, Chennai.
Mr CN Prasad Group President and CEO of Sundaram Clayton said that “It may happen to some extent, but iron ore shortage will not be the primary driver for increased uptake in aluminum castings due to the high cost differential between iron and aluminum castings.”
Mr Prasad said that iron ore shortage is a result of the mining ban in Karnataka, following instances of illegal mining in the State. Replacing cast iron parts with aluminum also means redesigning the vehicle, thus adding to the costs.
He said that Sundaram Clayton sees opportunities in tighter emission norms for passenger cars and trucks. Aluminum castings make the vehicle lighter, leading to lesser fuel consumption. After US and Europe, the trend is being seen in India too.
Mr Venu Srinivasan MD of Sundaram Clayton said that the company is eyeing a turnover of INR 1,000 crore this year despite the slowdown in the auto industry. Mr Srinivasan sees investments made in new products producing results going forward.
He said that Sundaram Clayton's new plant in Oragadam, near Chennai, will start trial production in January 2012. Around INR 80 crore will be invested in this plant which will cater to export markets. The company will also pump in INR 40 crore to expand capacity at its plant in Padi, Chennai.
Previous article
Ethiopia and UAE to build aluminum extrusion plant jointly
Next articleEC clears CITIC bid for German aluminium casting group KSM
Grow with
AL Circle
