CHENNAI: Tyre major CEAT has signed an MoU with the Tamil Nadu government to put up a greenfield tyre factory near Sriperumbudur on the outskirts of Chennai.
According to sources, the company has signed an MoU for a total investment of Rs 4,000 crore, of which Rs 2,000 crore is being invested in the first phase itself. The investment will generate 1,000 jobs at the end of the first phase.
It’s not clear when the second phase will kick off though the investments will be made over a two-three-year phase.
The factory, which will produce around 200-250 tonne of tyres per day in the first phase, will focus on radials for passenger cars.
Apart from that, CEAT is also focussing on creating a truck service hub in Tamil Nadu, said sources. The company will develop its retail network CEAT Shoppe in the southern markets starting with a focus on Tamil Nadu.
The Chennai plant will be CEAT’S sixth. The company’s Indian plants include those in Nashik, Bhandup, Halol, Ambernath and Nagpur. It also has an overseas plant in Sri Lanka.
