Global Fastener News

Report: TFS and Precision Castparts Explore India Operations

Jason Sandefur

Both Textron Fastening Systems and Precision Castparts are reportedly considering setting up manufacturing facilities in India. The move would give the companies more exposure to India’s domestic auto markets, while also providing a convenient location from which to export product to China, the Economic Times reports.
The newspaper reported that the move has worried some local manufacturers who think the global fastener companies could threaten their competitiveness. “The global majors are keen to set up shop in India due to low labour costs and high-quality engineering skills in auto ancillary manufacturing,” the Times reported.
Manufacturers could save as much as 30% on production costs by relocating to India, where labor costs average about 9% of sales, the Times reports.
Auto component exports from India have grown at compounded rate of 19% since 1999, pushing the export value above $1 billion in 2004, according to the Times. �2005/6 FastenerNews.com