Milan, Italy - Balkrishna Industries Limited (BKT), India-headquartered manufacturer of off-highway tires, has announced plans for the construction of a $100-milion (€87.5 million) production unit in the US.
The plant, said BKT in an 8 Nov statement, will mark the company’s first manufacturing site overseas, in addition to five production units inside India.
BKT said it was currently scouting for location and would determine a site by the year-end. Land acquisition is expected to take place by the end of the first quarter 2019 and the 20,000-tonne production unit is set for completion by the end of March 21.
Europe is presently BKT’s largest sales market accounting for more than half of the company’s overall turnover.
However, the company said, the Americas are becoming an increasingly interesting and expanding market, with a “more-than-positive” outlook for the future.
“Target markets are both the replacement market and OEMs in the US. The remaining tire demand will still be catered for directly from India,” the company added.
BKT reported sales of $692 million (€608 million) in fiscal 2017-18, which it said represents about a 6% share of the global OTR tire business. The company’s goal is 10% by 2025.