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August 05, 2010 02:00 AM

JK Tyre to build 4th tire plant in India

Crain News Service
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    CHENNAI, India (Aug. 5, 2010) — JK Tyre & Industries Ltd. has selected a site near Chennai in southern India for a $325 million radial car and truck tire plant the company expects to have on stream by October 2011.

    The factory, JK's fourth in India, would ramp up by 2012 to its full capacity of 5 million car and 600,000 truck tires a year, company officials said at a press conference in Chennai.

    JK will build the plant on 100 acres of land acquired in Sriperumbudur, Tamil Nadu, in southern India. The plant will employ 1,000 at full capacity and expand JK's capacity in India to 15.5 million units annually.

    Officials for JK Tyre, India's No. 3 tire maker and No. 19 worldwide, stressed the plant will maximize the use of natural resources and will use a modern bulk carbon handling system designed for zero carbon leakage. The manufacturing line will be highly automated for zero error production and complete traceability through bar coding system.

    JK Tyre officials, led by Raghupati Singhania, vice chairman and managing director, signed a memorandum of understanding this week covering the investment with officials from Tamil Nadu state, including Thiru M Karunanidhi, chief minister, and Thiru M.K Stalin, deputy chief minister.

    “With this upcoming greenfield project, which is being set up by incorporating the global best manufacturing practices,” Mr. Singhania said, “we will set newer benchmarks for the industry by having the most efficient, modern and productive tire plant in the world and hope to cater to a large market both domestic and international.”

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