CEAT To Increase Radial Production By 72 000
Posted 24,March

By Chaveendra Dunuwille

In Local News

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CEAT Kelani Holdings can be considered as one of the most successful joint  ventures between India and Sri Lanka in the manufacturing sector. The  company’s investment in Sri Lanka to date is recorded at LKR 8 billion including  the LKR 3 billion committed in January 2018 for company expansion.  

As part of the company’s expansion strategy as a means of supporting the  government effort to conserve foreign exchange through increased local  production CEAT Kelani Holdings announced on the 23rd of March, 2021 that  they plan on increasing production of Passenger Car Radial (PCR/Van) tyres by  72 000 tyres per year, bringing about a 16% increase to the annual capacity. 

The recent increase in tyre production in 2021 was the result of the company  installing 2 hydraulic tyre presses in its Kelaniya Manufacturing Plant. These  will also be the first two hydraulic tyre presses installed in a CEAT  manufacturing facility in Sri Lanka. The new presses come at a 45% premium  over its mechanical counterpart. According to the company the upgrade in  manufacturing technology will improve the tyre performance significantly. 

The expansion allowed for the company to reach a total car and van tyre  production capacity of over 500 000 tyres per year with the most popular tyre  sizes being found in the range of 12 to 14. The local demand for tyres of vehicles  such as Maruti 800 and Suzuki Alto saw an increase with the temporary import  restrictions placed by the government. 

The second phase of the expansion will see the company install 2 additional tyre  presses and a tyre building machine. This proposed expansion will result in a  further increase in capacity to 100 000 additional radial tyres per annum. 

The company was recorded to have supplied half of Sri Lanka’s tyre requirements  back in August 2020. It is said to have increase it supply of tyres to the passenger  bus and goods transport sector by 100%. This venture is expected to save the  country LKR 11 billion per year in foreign exchange.  

Also the company noted a further 85% increase in the three wheeler tyre  production between June and September 2020. Additionally CEAT has shown a  gradual increase in the production of motorcycle tyres and this progressive  increase is expected to save a further LKR 350 million.