Ceat Tyres to set up Rs400 crore plant in Butibori
12 Dec 2014
Ceat Tyres is setting up a tyre plant in Butibori, Nagpur, for which the company will invest Rs400 crore in the first phase, for which production is expected to commence by April 2016.
Maharashtra chief minister Devendra Fadnavis laid the cornerstone for the plant that will be set up in three phases. The first phase would run from 2014-2016, the company said in a statement.
The tyre plant will be spread across 60 acre of land and is expected to manufacture 1.2 million tyres.
The two-wheeler production volumes are expected to double in the next two years owing to the capacity.
''With this plant we are looking to double our capacities within two years. This will give us the added impetus to increase our market share. Butibori gives us great advantage of reduced logistics cost and a plant in a central location,'' said Anant Goenka, managing director, Ceat Ltd.
''In addition, MIDC will support us by providing a great ecosystem and infrastructure for the manufacturing facility,'' he added.
The new plant will manufacture two- and three-wheeler tyres. The production process will have the certification of ISO 14001 for environment management system and OHSAS 18001 for safety, health and environment.
The new plant will have highly-automated manufacturing processes and equipment sourced from global market.