BKT to build $100 million tyre production facility in the US
BKT's first manufacturing site outside of India is expected to be completed by March 2021
Balkrishna Industries Limited (BKT) has announced a $100 milion construction project for a new production site to serve the entire American region. This new production site will be the multinational group’s first manufacturing site outside of India.
The Americas are becoming an increasingly interesting and expanding market for BKT. The more than positive outlook led to the decision of establishing a new wholly-owned subsidiary company in the USA to set up a greenfield project for the construction of a new tyre manufacturing plant in the USA designed for a yearly production capacity of about 20,000 MT in the entire off-highway tyre segment. Target markets are both the replacement market and OEMs in the USA. The remaining tyre demand will still be catered for directly from India.
The project for the construction of a US tyre manufacturing plant providing for a total capital expenditure of approximately $100 million is presently at its initial stage. The company is looking for an appropriate terrain, which will be defined by the end of this year, so that land acquisition will take place by the end of the first quarter 2019. Project completion is expected by March 31, 2021.