Ceat launches greenfield radial tyre project in India

ERJ staff report (DS)

Mumbai, India -- Ceat Ltd has begun a greenfield radial tyre project in Halol, Gujarat State with an investment of Rs. 7000 million (Euro 110 million). The investment will be made in three phases. In the first phase, due on stream in June 2010, the plant will make around 100-150 tonnes daily and provide employment for 1000 people. In subsequent phases, this will expand to 500 tonnes daily.

The project will make truck, bus, light truck and passenger car radials. Up to 40 percent of production will be for the export market. However, the plant is located about 40 km from Baroda, close to two OEMs - TATA Nano Project and General Motors plant in Gujarat.

Speaking on the occasion Mr. Paras Chowdhary, Managing Director, Ceat Ltd. said, ”Setting the plant in Halol will enable us to avail the infrastructural support like gas from GSPL, water from Narmada canal and power from GSEB's local substation which is located just 500 meters away from the site. Moreover the availability of trained labourer from the adjoining areas and the support from the administration will definitely achieve the cause”. He also added,”Proximity to the port will help in shipping out of the tyres and importing the raw materials with ease”.