ERJ staff report (DS)
Mumbai, India -- JK Tyre has bought Mexico's Tornel (Compania Hulera Tornel SA de CV) for Rs 2700 million (Euro 43 million). The company said the aim is to expand in the Americas and gain access to the North American market.
Tornel operates three plants in Mexico, two of which are in Mexico City and the third is in Tultilan, Mexico. All three make car and light truck tyres, with a combined capacity of around 17 500 units/day. In addition, the two Mexico City plants makes truck and bus tyres, while one of these also makes off-road and agricultural tyres. The Tultilan unit also makes agricultural tyres.
The deal will be financed through a special financial instrument, but will be funded through a combination of debt and internal resources.
Local reports said the acquisition would add roughly 290 tonnes/day in capacity to JK Tyres' 650 tonnes/day production capacity.
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Website of JK Tyre
Website of JK Organisation
JK Tyres acquires Mexican firm Tornel The Hindu Business Line (India)
JK Tyre buys Mexican tyremaker for 2.7 bln rupees Reuters (India)
JK Tyre acquires Mexican tyre co for Rs 2700 m MoneyControl (India)