Kelani Tyres said 3.2 billion rupees will be invested through its joint venture with India’s CEAT unit in the island to boost capacity in car, SUV and motorcycle tyres.
The firm expects to boost steel belted radial tyre capacity for cars, SUVs and light vans from the current 51,000 to 61,000 per month, a company spokesman said. Motorcycle capacity will be increased to 57,000 from the current 41,000.
The investment will also be used to replace old tyre making machines with new ones with higher capacity and latest technical advances. CEAT will also be able to make 17 inch rim size tyres, and tyres high speed rating (H and Higher) with lower rolling resistance. The expansion will also pave the way to boost production up to 100,000 car/SUV/light van tyres in the future with some investments in downstream capacity, the company said.
CEAT-Kelani had seen a surge in demand after imports were banned as money was printed to enforce unrealistically low interest rates, creating a balance of payments crisis.
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