Balkrishna Industries Limited (BKT) announced the USD100 million construction project of a new US production site that would cater to the entire American region. The facility will be the multinational group’s first manufacturing site outside of India.
Europe is currently the off-highway tyre manufacturers’ largest sales market, accounting for more than half of the company’s overall turnover. Yet, the Americas are becoming an ever-expanding market. BKT’s wholly-owned subsidiary company in the USA to set up a is designed for a yearly production capacity of about 20,000 MT in the entire off-highway tyre segment. Target markets are both the replacement market and OEMs in the USA. The remaining tyre demand will still be catered for directly from India.
The project was approved by the Board of Directors and announced at this year’s TIA Hall of Fame Award Ceremony in Las Vegas.
The company is looking for an appropriate terrain, which will be defined by the end of this year, so that land acquisition will take place by the end of the first quarter 2019. Project completion is expected by March 31, 2021.