Alliance Tire Group, a Yokohama group company, is to build a new plant in India’s Special Projects Zone, Atchutapuram Industrial Park, Visakhapatnam, Andhra Pradesh.

The new plant will have a daily production capacity of 55 tons (rubber weight) with planned capital investment totaling US$165m.

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 tyre 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 tyre brands: Alliance, Galaxy and Primex, which are used for agricultural, construction, industrial and forestry machinery.

Yokohama Rubber launched a project to expand the capacity of its existing line at ATG’s Dahej plant in February, 2018. On completion, capacity increased 1.6-fold. Expectations for further increases in demand for ATG’s off-highway tyres led to the decision to build an entirely new plant.

“Yokohama’s management plan- the Grand Design 2020 (GD2020) includes a commercial tyre strategy that targets off-highway tyres as a growth driver,” said ATG director, Nitin Mantri.

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 has room for expansion.

The new plant in India will expand the Yokohama Group’s global off-highway tyre 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 tyre daily production capacity of the Yokohama Group will now increase to 480 tons (rubber weight).