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JK Tyre to set up Rs 1,500 cr tyre plant near
Chennai
CHENNAI: Tyre major JK Tyre
on Wednesday announced an investment of Rs 1,500
crore to set up a state-of-the-art greenfield
radial tyre manufacturing unit near here
which would produce 56 lakh tyres annually. ''We
signed a Memoranum of Understanding with the
Tamil Nadu Government today for this purpose.
With 50 lakh car tyres and six lakh bus and
truck radial tyres, our annual domestic capacity
will reach 1.55 crore,'' JK Tyres and Industries
Limited Vice-Chairman and Managing Director Dr
Raghupati Singhania told reporters here.
The plant to be set up in the industrial hub of
Sriperumbudur would start production by the end
of 2011 in first phase. Full supply of radial
tyres from the new plant would start in 2012.
He said the proposed plant was an environment
friendly one, equipped with technology that will
among others, ensure zero carbon leakage and
maximise use of natural resources. ''We are
looking forward to this venture and the state
government has helped us with concessions in
areas like sales tax,'' he said in response to a
query.
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Earlier in the day, the company signed the MoU
for setting up the plant in the presence of
Chief Minister M Karunanidhi and his Deputy MK
Stalin, who holds the Industries portfolio. The
plant would employ 1,000 high-end skilled
labourers and Tamil Nadu was chosen for the
company's expansion in view of it emerging as an
auto hub and the firm's existing presence in
Karnataka, Singhania said. The company, he
said, had invested Rs 500 crore on expansion
activities in the last few years, adding it
would soon come out with ''India's first'' 3.5
tonne 57 inch ultra-large size tyre to be used
in Off The Road (OTR) earth-moving equipment.
