Ceat commissions new plant near Chennai

Tyre maker Ceat on Wednesday said it has commenced production from its new manufacturing facility near Chennai.

The company has commissioned the commercial production at the greenfield facility near Chennai with effect from February 12, 2020, Ceat Ltd said in a regulatory filing.

The company plans to ramp up production at the plant in a phased manner, it added.

In 2018, Ceat had announced investment of around Rs 2,000 crore over the next three to five years for setting up the plant at Sriperumbudur taluka near Chennai.

The company had said that it would begin with rolling out passenger car radial tyres from the facility with an initial capacity of around 250 tonnes per day. It also plans to utilise the facility for exports.

The company currently ships tyres to more than 100 countries.

Ceat has manufacturing facilities at Bhandup, Mumbai, Nashik, and Nagpur in Maharashtra and Halol in Gujarat. Besides, it also has an off-highway tyre manufacturing plant at Ambernath, Maharashtra.

The company meets its production through in-house plants and secures the rest from various outsourcing partners on conversion-cost basis and bought-out basis.

Shares of Ceat on Wednesday closed 5.72 per cent higher at Rs 1,037.20 apiece on the BSE.