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Yokohama Rubber Co. Ltd. is planning to spend $ 45.5 million on expanding the production of Off The Road tyres at its Alliance Tyre Group plant in Dahej, Gujarat, India. This investment package will run till the 2019 end. The company says that the work on the expansion will begin by February this year, the production at the site will increase by more than 60 percent to 91,700 tonnes from 57,000 tonnes at present.
Yokohama acquired the Dahej plant in 2016 when it purchased Alliance Tyre Group. The reason that company gave for the expansion from its current limit is that since the tyre sales are acquiring upward trend nowadays, therefore, the company decided to expand the production capacity to avoid insufficient supply capacity.
ATC Tyres began its operations in Dahej facility in 2015 and produce 3 core ATG tyre brands namely, Primex, Galaxy and Alliance. They have a second tyre plant situated in Tirunelveli, in the southernmost state of Tamil Nadu in India.
Their products are used for off-road vehicles, industrial, agricultural, forestry and construction machinery vehicles. The expansion of the plant is closely associated with the Yokohama’s core strategy: to expand its commercial tyre business.
In 2015, Yokohama Rubber Co. Ltd. started manufacturing bus and truck tyres at a new plant in Mississippi (USA). It acquired Alliance in 2016 and also Aichi Tyre Industry Co. Ltd. in 2017.
