MUMBAI, India (April 14, 2008) — JK Tyre has purchased Mexico's Compania Hulera Tornel S.A. de C.V. for $68 million.
The company said the aim is to expand in the Americas and gain access to the North American market.
Tornel operates three plants in Mexico—two in Mexico City and the third in Tultilan. All three make car and light truck tires, with a combined capacity of around 17,500 units per day. In addition, the two Mexico City plants make truck and bus tires, while one of these also makes off-road and agricultural tires. The Tultilan unit also makes agricultural tires.
The deal will be financed through a special financial instrument, but will be funded through a combination of debt and internal resources.