ATC says investment in new OTR plant will reach $500 million

Chino, California - American Tire Corp. (ATC) will spend $500 million to build an off-the-road radial tyre plant in Washington state, up from its original estimate of $200 million.

The company said the investment will be covered primarily by its sales though it will consider “outside investment.” The proposed factory will build 18,000 units annually of size 58/80R63 tyres as well as other OTR tyres in 57- and 51-inch sizes, the company said in a statement. Eventually, ATC said the plant will have a full annual capacity of 50,000 units by 2010.

ATC President Abraham Hengyucius said a decision on the location of the plant will be made in January.

From Tire Business (A Crain publication)