Tyre major JK Tyre today announced an investment of Rs 1,500 crore to set up a radial tyre manufacturing unit near here with a capacity to produce 56 lakh tyres annually.
"We signed a Memorandum of Understanding with the Tamil Nadu government today for this purpose. With 50 lakh car tyres and six lakh bus and truck radial tyres, our annual domestic capacity will reach 1.55 crore," JK Tyres and Industries Vice-Chairman and Managing Director Raghupati Singhania told reporters here.
The plant to be set up in the industrial hub of Sriperumbudur would start production by the end of 2011 and full supply of radial tyres from the new plant would start in 2012.
He said the proposed plant was environment friendly, equipped with technology that will among others, ensure zero carbon leakage and maximise use of natural resources.
"We are looking forward to this venture and the state government has helped us with concessions in areas like sales tax," he said in response to a query.
Earlier in the day, the company signed the MoU for setting up the plant in the presence of Chief Minister M Karunanidhi and his Deputy M K Stalin, who holds the Industries portfolio.
The plant would employ 1,000 high-end skilled labourers and Tamil Nadu was chosen for the company's expansion in view of it emerging status as an auto hub and the firm's existing presence in Karnataka, Singhania said.
The company, he said, had invested Rs 500 crore on expansion activities in the last few years, adding it would soon come out with "India's first 3.5 tonne 57 inch ultra-large size tyre to be used in Off The Road (OTR) earth-moving equipment".
