JK Tyre Acquires Mexican Firm Tornel

Indian tyre firm JK Tyre & Industries has completed the purchase of a 100 per cent stake in Mexican manufacturer Tornel. The company reportedly spent 2.7 billion Rupees in bringing Tornel under its control. The move adds a 290 tonne production capacity in Mexico to JK’s domestic capacity of 650 tonnes.

In a statement from JK Tyre, the reasons cited behind the acquisition included the desire to increase the global impact of the firm, while the location of Mexico was particularly important in opening access to the North American Free Trade Agreement and the developing territories in Central and South America.

The completion of the takeover comes two months after JK’s board approved the move in a meeting on 11 April this year, as was reported by T&A. The acquisition was made using the SPV – Special Purpose Vehicle – route, which was financed through internal accruals and debt.