Ceat OTR Factory Plans in Final Stage

Plans by India’s Ceat Ltd to build a factory for the production of 60 tonne OTR tyres should be finalised by the end of the year or shortly afterwards, and construction of the new facility, located near the city of Patalganga in western India, is anticipated to begin by next May. The newspaper Hindu Business Line also reports that ‘sources’ claim discussions between Ceat and possible partners are in an “advanced stage”, indicating that a second-tier tyre major is the most likely collaborator for such a project. The Hindu Business Line named Yokohama, Toyo, Cooper, Kumho and Hankook as likely providers of “decent radial technologies.”

“Companies are willing to collaborate in such venture. However, there are differences with the interested parties on the mode of participation and other terms and conditions,” said the source quoted in the newspaper article. It appears that Ceat wishes to retain a controlling stake in the venture and pay royalties for access to the technology, a scenario that would maximise market access for the tyres. The company has also already assembled a team of consultants familiar with the technologies used by global tyre majors, and this knowledge will be utilised for in-house research and development.