BKT looking to further increase capacity

With capacity expansion projects now completed and being ramped up, BKT anticipates achieving a total capacity of 360,000 tonnes per annum by the end of March 2023. But further growth is necessary if the company is to keep pace with demand for its off-highway tyres. During a conference call with investors on 5 August, the tyre maker confirmed that plans are already “on the drawing board” for additional expansion beyond the current projects.

No specific details are available at this point in time, and a BKT representative told conference call participants that this next step to grow capacity would take the form of either a greenfield or a brownfield project. While the representative didn’t specify planned tonnage or state which particular products would be manufactured, BKT anticipates that once a decision is reached, additional brownfield capacity would be available within one year and greenfield capacity in 15 to 18 months.

BKT is currently ramping up a recently completed 50,000 tonne expansion to its Bhuj plant in Gujarat, India. This was set up with an investment of Rs 8 billion (£83.2 million) and opened in March 2022. The tyre maker will bring the additional capacity in Bhuj on stream over the coming six months.

The project in Bhuj followed the commissioning of a new, 30,000 tonne a year plant in Waluj, Maharashtra state. Initially intended to replace an aging facility nearby, the new and existing factories are both currently operating, with the older plant also being upgraded to give it an annual capacity of 25,000 tonnes.