MAHARASHTRA, India — Off-highway tire manufacturer Balkrishna Industries Ltd. (BKT) is budgeting $100 million for the plant it is planning to build in the U.S., the company disclosed this week.
BKT Chairman and Managing Director Arvind Poddar disclosed his company's plan for a U.S. plant on Oct. 29 during his Hall of Fame acceptance speech at the Tire Industry Association awards ceremony in Las Vegas.
The new factory will be BKT's first factory outside of India and fifth tire plant overall. BKT is India's fifth largest tire maker and No. 39 worldwide, based on fiscal 2017-18 sales of $692 million.
To move the project forward, BKT will establish a new subsidiary in the U.S., whose first task will be to select an appropriate site for the plant and acquire the land, which should be finalized by by the end of the first quarter next year.
The company said it expects the new plant to open in the first half of 2021 with a nameplate capacity of 20,000 metric tons per year. That's smaller than any of the company's four plants in India. By comparison, the company's newest factory, in Bhuj, Gujarat, is rated at 130,000 tons per year.
BKT expects to make finalize site selection before year-end and complete the land acquisition.