BKT Tires has decided to put its plans for a U.S. plant on hold.
In its first quarter earnings report, the India-based tiremaker cited “difficult macroeconomics” and “volatile climate conditions” which led to the business’ uncertainty about the project and led its Board of Directors to put the project on hold.
Arvind Poddar, chairman and managing director of Balkrishna Industries, Ltd. (BKT), announced the company’s plans for a U.S. manufacturing facility via video during his acceptance speech for his induction into the Tire Industry Hall of Fame last year.
In its first quarter report, the company also projected a 3% to 5% growth in sales volume for fiscal year 2020 and outlined plans for its next phases of growth. Those include:
- BKT started trial production at its carbon plant plant in Bhuj, India with an initial production capacity of 60,000 metic tonnes. Phase 2 of the project is slated to be commissioned in fiscal year 2021 with the plant projected to increase capacity to 80,000 metric tonnes.
- The company also has plans for a $5 billion upgrade to its plant in Aurangabad, India, to a new fully intregrated state-of-the art facility.
- BKT will also increase capacity to 5,000 metric tonnes at its Buhj, India plant and add a warehouse and mixing plant on the property.