Alliance Tire Group to invest $160 million in greenfield and brownfield capacity expansion

Alliance Tire Group (ATG) to invest $160 million in greenfield and brownfield capacity expansion.

The company is proposing to set up a greenfield off-highway tyre production unit in Gujarat, while it seeks to expand the production capacity of its existing plant in Tamil Nadu.

The company will also be ramping up the capacity of its tyre production unit at Gangaikondan near Tirunelveli in Tamil Nadu. The capacity of the plant, located on 114 acre leased land, is being expanded to 61,000 tonne per annum from 48,000 tonne per annum.

However, under the current expansion plan, the capacity of this plant will be further expanded by 29,000 tonne per annum. ATG will also put up a cogeneration plant at Tirunelveli comprising boiler with 35 tonne per hour capacity for steam generation and 4.5 mw turbine.

The proposed expansion is to be funded through a combination of debt and equity. In the total project cost of $160 million, International Finance Corporation (IFC), part of the World Bank group, is looking to provide debt funding of up to $65 million.