MRF may set-up plant in China
Tyre company MRF, is planning to set up a production facility in China, to chest the threat of low-priced imports from the country, reports Mint.
It may be noted that Chinese imports already constitute one-tenth of the domestic tyre industry.
MRF had earlier shelved its plans to set up production facility in China.
Company officials are assessing the Chinese market. In order to protect the domestic rubber industry, the import on duty is fixed at 20%, while duty on tyres is between 8% and 10%. Higher duty on raw rubber, a key component of making tyres, which could go up to 60% of the total cost, indicates that the domestic manufacturers have to depend on domestic supply, as imports have become costly.
Besides the company has recently announced plans to establish a greenfield facility in Tirchy at an investment around Rs 6-7 billion, and is also looking at two additional greenfield facilities.
Shares of the company gained Rs 12.55, or 0.34%, to end at Rs 3,714.45. The total volume of shares traded was 751 at the BSE.(Friday).
