New factory: MRF signs agreement with regional government

News of MRF Ltd.’s plan to set up a new factory in India’s Gujarat state first circulated towards the end of 2015, and now the tyre maker reports signing a Memorandum of Understanding with the state government that sets out its in-principle intention to erect a manufacturing facility there. The MoU was signed on 11 January and covers the proposed investment of Rs 45 billion (£539.7 million) in a factory that will produce “automotive tyres, tubes, flaps and related products.”

The abovementioned Rs 45 billion will be invested in phases over a period of ten years and funded by internal accruals and/or debt.