Tuesday, the media reported that Alliance Tires signed memorandum of understanding with Government of Tamil Nadu to set up a tyre manufacturing facility in the SIPCOT industrial park at Gangaikondan in Tirunelveli at an investment of Rs.400 crores.
The Gangaikondan facility is close to Tamil Nadu's rubber producing district, Kanyakumari and the major rubber producing state of Kerala.
ATC Tires is a new entity formed by Yogesh Agencies & Investments and Warburg Pincus, a US-based fund after the takeover of Alliance Tire Company of Israel. Alliance Tire is an international company with 50 years of experience in developing and manufacturing a wide range of tyres, said the report.
According to an official release, ATC Tires would invest Rs.300 crores in three years and another Rs.100 crores in the fourth and fifth years. The project would employ 1,000 persons directly and another 800 people indirectly.
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