The Hindu Business Line : Ceat setting up greenfield radial facility in Gujarat

Kolkata, May 16 Ceat Ltd has decided to set up its proposed Rs 500-600 crore greenfield radial facility in Gujarat. According to sources close to the State government, the company has recently filed an application for the allotment of approximately 100 acres at either Halol near Baroda or Bharuch for setting up the proposed 36-lakh radial tyre facility.

The tyre maker previously shortlisted Tamil Nadu, Andhra Pradesh, Karnataka and Gujarat as the possible locations for the greenfield venture. Apart from passenger tyres the proposed plant would also host a pilot facility to manufacture 2.5 lakh truck-bus radials an annum.

Ceat has previously planned to set up a commercial scale truck-bus radial tyre manufacturing facility. However, having failed to rope in the right technology partner for the project, the company decided to set up the pilot project to establish its technology accessed through global consultants.

When contacted Ceat sources admitted that the company has finally settled for Gujarat for setting up the greenfield plant primarily due to the available infrastructure facilities and work culture of the State. Proximity to the port has also offered an advantage as the plant would have high import intensity and would offer export opportunities.

Ceat had previously selected Patalganga in Maharashtra for setting up the Rs 200-300 crore off-the-road (OTR) tyre unit. The company also plans relocate its existing facility at Bhandup in the suburbs of Mumbai to Patalganga, in the future.

The proposed 60-tonne greenfield facility will produce high tonnage OTR tyres primarily to cater to the export market. While land acquisition of the project is yet to begin, the company is hopeful to start construction of the facility in 2008.

Ceat is also doubling up the existing OTR capacity at both the Bhandup and Nasik factories to 60 tonne.

More Stories on : New Projects | Tyres | Gujarat

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