Recently, Indian tire manufacturer Ceat Group announced a major overseas investment plan and will officially sign an agreement with the Sri Lanka Board of Investment to invest US$171 million to expand two key factories it acquired in Sri Lanka. This investment not only demonstrates Ceat's determination to deepen its presence in the global off-highway tires market, but also further consolidates Sri Lanka's position as an important manufacturing and export hub in South Asia.
The expanded factory is the core asset of the off-highway tire and track business that Ceat Group successfully acquired from global tire leader Michelin in 2022, including the tire factory in Midigama and the foundry product factory in Kotugoda. "The Camso brand is an excellent fit with the growth strategy of Ceat's off-highway tire business, thereby improving our margin profile," said Arnab Banerjee, managing director & CEO, Ceat.
It is reported that this huge amount of funds will be mainly used to increase production capacity, introduce advanced technologies and optimize production processes, aiming to strengthen Ceat's global market competitiveness in the high-profit off-highway tire and engineering machinery track fields. This move marks that Ceat has officially entered a new stage of strategic integration and capacity expansion from the asset acquisition stage.
Ceat clearly stated that this investment positions Sri Lanka at the core of its international expansion strategy. By establishing Sri Lanka as a world-class manufacturing and export base for off-road tires, Ceat will not only be able to better serve global customers, but also effectively optimize the supply chain and reduce operating costs.
Ceat's substantial investment in Sri Lanka is a typical example of Indian tire companies accelerating their international expansion and seizing a leading position in global market segments. By integrating high-quality assets, making continuous investments, and mastering core brands, Ceat is steadily advancing its strategic blueprint for global dominance in off-highway tires.
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