MAHARASHTRA, India — Off-highway tire manufacturer Balkrishna Industries Ltd. (BKT) is suspending its plans for a U.S. tire factory, citing "business uncertainties" related to difficult macroeconomics and the "volatile" climate conditions.
BKT announced plans last October to build a $100 million plant in the U.S., saying the investment would help it accelerate its business with North American equipment makers by being able to offer faster deliveries as well as enable it to export to neighboring countries "in a more competitive manner."
BKT Chairman and Managing Director Arvind Poddar disclosed the plan during his Hall of Fame acceptance speech at the Tire Industry Association awards ceremony in Las Vegas.
The Maharashtra-based tire maker disclosed its decision to put the plans "in abeyance" in a first-quarter fiscal 2020 financial document. It did not elaborate on the statement.The factory would be BKT's first 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.