Tyre major JK Tyre & Industries has acquired Mexican tyre company Tornel. The transaction will involve an amount of around Rs 270 crore and the buyout is expected to close by the end of May 2008, subject to applicable regulatory approvals.
Tornel has three operating tyre plants with an aggregate capacity of 6.6 million tyres per annum. Situated in Azcapotsalco, Tultitian and Hindalgo, the three plants of Tornel employ 2,000 people.
The company manufactures the entire range of bias and radial tyres. In the bias category, it makes truck, LCV, farm and industrial tyres while in the radial category it makes trucks, LCV and high-speed passenger car tyres.
“JK Tyre has been outsourcing tyres for its exports markets from China and Vietnam, besides its four manufacturing facilities in India. In line with our vision, this acquisition extends our global reach. We are already the largest exporter to the North and South American markets,” said H S Singhania, chairman, JK Tyre.