Mumbai: Japan’s Yokohama Group off-road tire maker Alliance Tire Group (ATG) third plant is being set up in Visakhapatnam with an investment of $165 1 million (about Rs 12.4 billion).1655 to build the plant costing $165 5 million $2.3 billion annual production capacity will be $2.3 billion for two of its The Indian plant adds more than 20,000 tons annual production of 10,000 tons (555 tons of rubber weight) tons) and is expected to be operational by the first quarter of 2023. Nitin Mantri, Chairman of Yokohama India and Director of ATG, said on Sunday that the project will create about 600 new jobs, bringing the workforce to 55,000 people.

ATG has plants in Dahej, Gujarat with a production capacity of 1,300 lakh tons per annum (360 tons per day) and Tirunelil, Tamil Nadu has a plant with a capacity of 10 lakh tons per day. The group has an annual production capacity of 45,000 tons in Israel. ton plant where the main R&D center is located. The Tennessee plant also has an R&D center.

The two plants produce off-road tires under three brands: ATG agricultural machinery-Alliance, Galaxy for construction and industrial machinery, and Primex for forestry machinery, and more than 90% of the products are exported to more than 120 countries.

Asked about making a capital investment during one of the worst economic downturns in history, Mantri said he had been looking for a suitable location for a third factory for the past three years and found Vizag before the epidemic broke out.

“On the demand side, we are coming off our best agricultural season and global forestry is in good shape, but construction has stopped.”

When asked if there are any plans to enter the passenger car/commercial vehicle tire segment, Mantri said, “ATG is, and will continue to be, an off-highway brand in the future. The exception, however, is the Dahejj plant where we are manufacturing radial tires. Next car: the new plant will produce off-road tires only.

He said that since the acquisition of Yokohama in 2016 ATG has invested more than 2 billion dollars in India so far.

When asked about India’s contribution to the group’s 6.5 total production and revenue of $ billion (2019) year), he said that India contributes 50 percent each to both production and revenue.

Mantri said the focus remains on exports, with more than 90% of India’s production going for exports and agriculture being the only sector in the country with a market share of about 4%.

He said that the non-road sector is growing at less than 5% but due to affordability it has been 10% per annum for the last few years He hoped that this rate will continue.

Private ATG Global (both US and Europe) offers 30,000 Global market share of less than 5% of tire types.

The new plant, with a capacity of 55 tons per day (rubber weight), will be built in the special engineering area of Achyutapuram Industrial Park near the South Port of Visakhapat.

The Yokohama Group has eight off-highway tire plants in four countries: Japan, India, Israel and Vietnam.

ATG was founded six years ago Specializing in the design, development, manufacture and marketing of tires for agriculture, forestry, construction, industry, earthmoving, mining and ports, ATG serves the 120-person market using Alliance, Galaxy and Primex brands on all continents.

ATG’s relationship with India began in 2007 when the then Mahansaria Warburg family and Warburg Pincus partnered to acquire the company, then known as Alliance, Tire Company Israel, and in 2009, began annual production in India.

In 2014, Warburg Pincus sold its stake to KKR. In July 2016, ATG was acquired by Japan’s Yokohama Rubber Company for about $1.1 billion.

Domestically, ATG competes with Mumbai-based Balkrishna Industries, which sells the BKT brand founded by Yogesh Mahansaria.