ATG to invest Rs.1,240 in Vizag
600 new jobs to be created
Japan’s tyre manufacturing giant Alliance tyre group(ATG)is going to invest aroud 165 million dollars, around Rs.1240 Crores in Visakhapatnam to establish its new plant here.
The proposed plant will add over 20,000 tonnes per annum (55 tonne per day rubber weight) capacity to the 2.3-lakh-tonne annual production from two India plants and will be commissioned by the first quarter of 2023. The plant will provide around 600 new jobs, adding to its 5,500 work force in India. Nitin Mantri, chairman of Yokohama India and director of ATG, told to media.
ATG has one plant at Gujarat with an annual capacity of 1.3 lakh tonne (360 tonne per day) and another at Tirunelveli in Tamil Nadu with an annual capacity of 1 lakh tonne. The group has a 45,000-tonne plant in Israel as well where it has its main R&D centre as well. The TN facility also has an R&D centre. These two plants produce all the three key off-highway tyre brands of ATG-Alliance for agricultural machinery, Galaxy for construction & industrial machinery, and Primex for forestry machinery and over 90 per cent of the production is exported to over 120 countries. When asked about such a capital investment amid one of the worst recessions in the history, Mantri said they were looking for a suitable location for the third plant for almost three years now and had identified Vizag before the pandemic broke out.
"From a demand side we see one of the best farming seasons ahead here and forestry is also doing well globally. Only construction is down."
Asked any plan to enter passenger vehicles/ commercial vehicles tyres, Mantri said "ATG is an off-highway brand and will remain so. But we have made an exception with our Dahej facility where we make radial tyers for heavy vehicles. The new plant will also be for off-highway tyres only." Mantri said. The proposed new plant at Vizag would be an additional asset to the state of Andhrapradesh and its expected that some other allied industries also would come up here soon.