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CEAT Invests 300 Million Rupees in Radialisation

(Clacton, U.K./Tyres & Accessories) CEAT Kelani Associated Holdings is to invest 300 million rupees (≤1.67 million) into the radialisation of its Kelaniya, Sri Lanka plant.


Managing director Rohan Fernando explained that the new equipment would produce tyres for “light weight vehicles.” Local news sources have reported that the manufacturing upgrade will be funded by local banks.


Kelani Tyres holds a 50 per cent stake in CEAT Kelani Associated Holdings, with the balance held by Associated CEAT – a joint venture between CEAT India and AMW.  Both CEAT Kelani Industrial Tyres and Associated CEAT turn out 1000 tonnes of cross-ply tyres a month for commercial vehicles like trucks, buses and three wheelers, holding a 65 per cent market share locally.

According to the Asia Times, the company was plagued by trade union strikes over a pay dispute that crippled production at both its factories for a week, resulting in losses of 150 tonnes of production. The company struck a new wage deal (including salary increases) in early March.


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