Chennai : Automobile tyre manufacturer MRF Ltd has signed a memorandum of understanding (MoU) with the Tamil Nadu government Friday to set up a radial tyre plant in Perambulur district.
The company will also expand its existing radial tyre plant at Arakonam. Both projects will involve an outlay of Rs.9 billion ($225 million).
The new plant will roll out 350,000 car and truck radial tyres in the first phase. The total capacity at the completion of the second phase will be 700,000 units.
Land measuring 290 acres is being acquired at the Perambulur district for the new plant.
The MoU was signed by MRF managing director K.M. Mammen and Tamil Nadu industries secretary M.F. Farooqui in the presence of Chief Minister M. Karunanidhi, union Minister for IT and Communications A. Raja and state Chief Secretary L.K. Tripathy.