The facility in Little Rock Arkansas would bring it closer to customers and result in savings of 100 dollars per ton of transportation cost.
NEW DELHI: Welspun Group has started work on a pipe manufacturing facility in the US at an investment of 100 million dollars that will result in substantial cost savings for its products in the American market.
At present the company is selling pipes in the US from India but the facility in Little Rock Arkansas would bring it closer to customers and result in savings of 100 dollars per ton of transportation cost.
The saving is substantial when compared to the cost of pipes, which range between 1,300-1,500 dollars per ton.
"The overall savings from locating close to customers would be 70 dollars if other costs are deducted. As the capacity of the unit would be 3,00,000, the overall savings would in excess of 20 million dollars per year," President of Welspun Group Akhil Jindal said.
The project is being implemented by the Group company Welspun Gujarat Stahl Rohren Ltd.
He said the facility would start production by spring of 2008 and would contribute 300 million dollars to the topline of the company which is expected to touch one billion dollars in 2007-08.
The company decides to locate its unit in the US as the country is becoming a hub for pipeline industry and has a strong replacement market. "It will also bring us closer to our customers in Canada and Latin America," Jindal said.
Welspun also got incentives to locate in Little Rock, which is home town of Former US President Bill Clinton.
The US plant will come up on a 740 acre site and employ 300 people. This is company's first facility outside India. Currently it manufactures in Dahej and Anjar in Gujarat.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}