ATG to Set up a New Tire Plant in Visakhapatnam
Alliance Tire Group, a Yokohama group company, announced today that it will build a new plant in India’s Special Projects Zone, Atchutapuram Industrial Park, Visakhapatnam, Andhra Pradesh for the purpose of expanding production capacity. The new plant will have a daily production capacity of 55 tons (rubber weight) with planned capital investment totaling US$165 million. Construction will start in the third quarter of 2020, and the new plant is scheduled to come on line in the first quarter of 2023.
ATG currently has two tire plants in India—the Dahej Plant in the state of Gujarat and the Tirunelveli Plant in Tamil Nadu. The plants produce all three of ATG’s core off-highway tire brands—ALLIANCE, GALAXY and PRIMEX—which are used on agricultural, construction, industrial and forestry machinery. With global demand expanding, Yokohama Rubber launched a project to expand the capacity of its existing line at ATG’s Dahej plant in February 2018. Upon the project’s completion, capacity has been increased 1.6-fold. However, expectations for further increases in demand for ATG’s off-highway tires led to the decision to build an entirely new plant.
“Yokohama’s management plan- the Grand Design 2020 (GD2020) includes a commercial tire strategy that targets off-highway tires as a growth driver. With increasing demand for our products in global markets, this decision comes at an opportune time,” said Nitin Mantri, Director, ATG.
The Atchutapuram Industrial Park in Andhra Pradesh is near the port of Visakhapatnam, which makes it an advantageous location for exporting finished products. The plant’s site has a total area of about 320,000m2, which provides plenty of room for future expansion.
The new plant in India will expand the Yokohama Group’s global off-highway tire production network to eight plants in four countries, including three in India, one in Israel, one in Vietnam, and three in Japan. The global off-highway tire daily production capacity of the Yokohama Group will now increase to 480 tons (rubber weight). Going forward, the Group will continue to strengthen its global competitiveness in the off-highway tire sector.