Balkrishna Industries Limited (BKT) announced plans to build a new plant for the production of carbon black. The new facility, located within the BKT production site at Bhuj, India, is anticipated to produce 60,000 tons of carbon black annually for the global OTR tire manufacturer.
According to the company, a $23 million (USD) investment has been earmarked for BKT’s backward integration project within their supply chain to continuously provide raw material for the increasing tire production.
The carbon black plant is another step forward in the company’s middle- and long-term strategy, which started with setting up the Bhuj site. Inaugurated in 2015, extending over an area of 120 hectares and at a cost of $500 million (USD), Bhuj boasts state-of-the-art production facilities and equipment. It is strategically located near the commercial port of Mundra, which has already been an important logistic hub for BKT’s exports.
This plant will enable the company to even better ensure raw material qualities thanks to the now even more accurate controls at the beginning of the entire manufacturing process.