KELANIYA, Sri Lanka (March 21)—Ceat Kelani Associated Holding is adding ity at its plant in Kelaniya to make steel-belted radial passenger and light truck tire capacity to its Kelaniya factory.
The production is destined primarily for domestic consumption, the company said. Ceat Kelani, a joint venture between Ceat Ltd. of India and Sri Lanka's Kelani Tyres, will invest about $3 million initially on tire-building machines and curing presses, according to Managing Director Rohan Fernando.
Radial output is expected to reach about 25,000 units a month, and production will start during fiscal year 2006-07.
The radial production unit will be housed in a former tube-making building adjacent to the existing mixing and calendering facilities, Fernando said. The old building will be completely renovated and air-conditioned.
Ceat will provide the technology for the project. The company is evaluating equipment suppliers in India and China.
Ceat Kelani reported sales of about $25 million in 2004.