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June 09, 2008 02:00 AM

Alliance's India plant to start up in '09

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    HADERA, Israel (June 9, 2008) — Alliance Tire (1992) Ltd. has begun construction of its $100 million farm tire plant in Tirunelveli, India, and expects production to begin by the first quarter of 2009.

    The factory will focus on making entry-level tires, which will allow the firm to focus more resources on its Hadera plant for higher value-added radials, Alliance officials said last year. The manufacturer is investing about $25 million in improvements at the Hadera site to boost capacity about 20 percent, according to Manny Cicero, president of Alliance Tire USA.

    The two projects were made possible by a cash infusion from Alliance's new owners, Yogesh Mahansaria and his father A.K. Mahansaria, both formerly part of senior management at India's Balkrishna Tires Ltd. Along with backing from international financiers Warburg-Pincus, the Mahansarias acquired Alliance last July for about $150 million.

    The new plant in Tamil Nadu Province in southeast India is expected to be finished by year-end, and capacity should grow throughout 2009 to an annualized output of 50,000 metric tons, Cicero said.

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