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December 02, 2008 01:00 AM

Ceat breaks ground on radial plant in India

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    MUMBAI, India (Dec. 2, 2008) — Ceat Ltd. has broken ground on a $140 million radial tire plant in Gujarat, India, that eventually will make up to 500 metric tons of passenger, light and medium truck tires a day.

    Up to 40 percent of production will be earmarked for export, Ceat said. The plant in Halol, Gujarat, is located about 25 miles from Baroda, close to two large vehicle assembly plants operated by TATA Nano and General Motors Corp.

    The plant will be built in three phases, Ceat said. In the first phase, due on stream in June 2010, daily capacity will be about 100 to 150 tons daily and provide employment for 1,000 workers. In subsequent phases, capacity will expand to 500 tons daily.

    The Halol site has considerable infrastructure advantages, including natural gas, power and water, as well as a trained labor force, according to Managing Director Paras Chowdhary. Its proximity to the port of Baroda also will provide benefits for importing raw materials and exporting finished goods, Chowdhary said.

    The plant will be Ceat's third in India. Ceat, the world's No. 29 tire maker in 2007 with $578 million in sales, operates plants in Mumbai and Nasik in Maharashtra State.

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