Production in foundries supplying castings to the automobile industry has dropped considerably
In Coimbatore, where a large number of industrial units and foundries are working in the automobile sector, the slump in vehicle demand is impacting several businesses indirectly.
A micro industry with just two CNC machines, doing job work, used to earn nearly ?10,000 a week from selling scrap. This income has reduced steeply in the last couple of months because of the slowdown in the automobile sector, says J. James, president of the Tamil Nadu Association of Cottage and Micro Enterprises.
Scrap dealers, numbering nearly 250 in the city, collect the iron and metal scrap from engineering industries and supply it to the foundries and steel plants as raw material.
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