JK Tyre to Erect £200 Million Greenfield Facility

A Memorandum of Understanding was signed on August 4 between JK Tyre and Industries and India’s Tamil Nadu Government for the establishment of a greenfield tyre factory within the state. The plant, to be established with an Rs 15 billion (£204.3 million) investment, will produce both passenger car truck and bus radials and have an annual capacity of 5.6 million tyres.

“With 50 lakh (5 million) car tyres and six lakh (600,000) bus and truck radial tyres, our annual domestic capacity will reach 1.55 crore (10.55 million),” JK Tyre’s vice-chairman and managing director Dr Raghupati Singhania stated upon announcing the document’s signing. The factory will be built in an industrial park in Sriperumbudur in the state’s north, a location chosen for its proximity to vehicle manufacturers and JK Tyre’s existing truck tyre facility in Mysore. It is expected to begin its first phase production at the end of 2011, with full tyre supply commencing in 2012.

Dr Singhania said the plant will feature environmentally friendly technology that will, amongst other things, ensure zero carbon leakage and maximise use of natural resources. ”We are looking forward to this venture and the state government has helped us with concessions in areas like sales tax,” he added. The factory will employ around 1,000 workers.