CEAT increases radial production by 30% in Sri Lanka

Wednesday, 3 July 2013 00:01 - - {{hitsCtrl.values.hits}}

Market leader invests Rs.400 million in Kelaniya plant expansion to meet growing demand in domestic and export markets

CEAT Kelani Holdings has commissioned three new curing presses at its radial tyre plant in Kelaniya, increasing capacity by 30% to meet growing demand in the domestic and export markets. This latest phase of expansion of capacity of the radial tyre plant, the third since its inception, involved an investment of Rs. 400 million, taking CEAT Kelani’s cumulative investment in radial tyre manufacture in Sri Lanka to Rs. 850 million, the company said. “CEAT is already the highest selling radial tyre brand in the country’s passenger car and van segments. We are very upbeat about the potential

for growth in the radial tyre market, following the exceptional success we have had over the past two years, with CEAT radials capturing a market share of more than 30% by May 2013,” CEAT Kelani Managing Director Raman Rajagopalan said. He disclosed that the commissioning of three new radial curing presses at the company’s plant will be followed by the installation of additional tyre building machines by October-November this year, allowing CEAT Kelani to double its radial production capacity. The new machinery will also give the plant the capability of producing radial tyres for Sports Utility Vehicles (SUVs) and high-end passenger cars, and will enable CEAT Kelani to increase the number of radial tyre sizes it produces and markets in Sri Lanka to more than 30. CEAT Kelani General Manager Manufacturing R.K. Das stated that expansion of capacity has been supplemented with the acquisition by CEAT Kelani of the latest Dynamic Balancing Machine, Plunger and Endurance Testing Machines and a Uniformity Machine to ensure that radial tyres produced at the plant conform to the strictest international performance and quality standards. CEAT Kelani’s passenger car radials branded ‘CEAT Milaze’ are now used by more than 850,000 customers in Sri Lanka, and have been chosen by many as Original Equipment. These tyres are also exported from Sri Lanka to 14 countries. A global tyre brand present in 110 countries and now headquartered in India, CEAT is an acronym that stands for Cavi Electrici Affini Torino, or Electrical Cables and Allied Products of Turin, with origins that date back to 1924 in Italy. A National Business Excellence Award winner in 2010, 2011, and 2012, CEAT Kelani Holdings is a successful Indo-Sri Lanka joint venture between the RPG Group of India and Kelani Tyre, Sri Lanka. The company operates three manufacturing units manufacturing truck, light truck, radial, motorcycle, three-wheeler and agricultural tyres and employs a workforce of 1,000 people.