CHENNAI: A Rs.400-crore tyre manufacturing facility will be established at the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) industrial park at Gangaikondan in Tirunelveli district.
The facility, which will have a capacity to make 54,000 tonnes a year, is being established by ATC Tires Private Limited. It is likely to generate direct and indirect employment for 1,800 persons.
The company will invest Rs. 300 crore in three years and another Rs. 100 crore in the fourth and fifth years. “The setting up of this project in Tirunelveli district will encourage other investors to locate their projects in the southern districts to which the government accords high priority,” says an official release.
In the presence of Chief Minister M. Karunanidhi, a memorandum of understanding was signed on Monday at the Secretariat by Ashok Mahansaria, Chairman and Managing Director of ATC Tires, and Industries Secretary M.F. Farooqui.
Mr. Mahansaria told reporters that the company expected to begin commercial production in the early next year. The unit, the first venture of his company in the State, would produce tyres for vehicles used for agricultural operations, forestry, construction, earth-moving and mining.
Most of the production would be exported.
ATC Tires is promoted by Yogesh Agencies and Investments Limited and Warburg Pincus, a United States-based private equity fund. A year ago, the promoters acquired Alliance Tire Company, Israel, a firm with 50 years of experience in developing and manufacturing a wide range of tyres, and formed ATC Tires.