Page 38 - CO October 2021

TICKEr TAPE
EQUIPMENT Japanese tyre major Yokohama Rubber Co has announced an commercial vehicles tyres.
YOKOHAMA TO INVEST ADDITIONAL $171 MILLION TO DOUbLE
While the first phase at an investment of $165 million for 137 tonne
CAPACITY OF UPCOMING VIZAG PLANT
of daily capacity will be on-stream by the first quarter of 2023,
the new additional daily capacity of 120 tonne in the second
additional $171 million investment into its upcoming off-highway
tyre plant at Visakhapatnam in Andhra Pradesh, which will nearly
the company recently doubled the capacity at the Dahej plant
double the initially planned daily capacity of 137 tonne to 257
and began construction of the Visakhapatnam plant in the third
tonne now. With this, the overall investment the Japanese group phase is scheduled to start in the first quarter of 2024. Though
has made in its India business, which by production capacity and quarter of 2020, given the rising global demand, it decided to
employee strength, is the largest globally at $508 million so far. nearly double the planned capacity at the Vizag plant. For the
The initial plan for the Visakhapatnam plant, which is underway group’s off-highway tyre business, India is the largest production
now with the steel structure being erected, was 137 tonne per day base with 90 per cent of its global production coming in from the
capacity at an investment of $165 million. two plants in Gujarat and Tamil nadu, which will go up after the
The capacity is being ramped up by 120 tonnes more at an Vizag plant goes on-stream. Dahej and Tirunelveli plants produce
investment of an additional $171 million, taking the total planned three of the group’s core off-highway tyre brands (Alliance, Galaxy
capacity to 257 tonne per day. Of the $508 million cumulative and Primex), which are used in agricultural, construction, industrial
investment, $336 million are flowing into the Vizag plant, coming and forestry machinery. More than 90 per cent of the production
up at the Atchutapuram industrial park in Andhra Pradesh on are shipped to foreign markets.
a 3,90,000-sq meter plot. The rest are incremental investments While the Dahej plant has a capacity of 1,26,000 tonne per 360
the group has made into the two plants that it had bought from tonne per day, the Tirunelveli plant is a 86,800 tonne per 248
Alliance Tyre Group in 2016 at Dahej in Gujarat ($135 million) and tonne per day facility and these plants employ over 6,000 of the
at Tirunelveli in Tamil nadu ($37 million). 7,000 global workforce at the group’s off-highway tyre business.
Yokohama had in early 2020 announced the Vizag plant with an The Atchutapuram facility at Visakhapatnam is being built on a
investment of $165 million. 3,90,000-square metre site, Gupta said adding that the site is
Yokohama Off Highway Tires is now the consolidated off-the-road large enough for further expansion. Yokohama’s medium-term
tyre business of Yokohama Rubber, after the merger of its two off- transformation plan seeks to position the group’s off-highway tyres
the-road tyre businesses (Yokohama OTR and Alliance Tire Group) business as a future growth driver.
globally effective this January. The company sells its products The group plans to expand the off-highway tyre business by
globally under the brands - Alliance, Galaxy, Primex and Aichi. capitalising on the strength of a multi-brand line-up that includes
In India, the group has two units -- Yokohama Off Highway Tires Yokohama, Alliance, Galaxy, Primex, and Aichi, and also to
India and Yokohama India. They manufacture passenger and develop new markets.

SMArTEQUIP LAUNCHES IN JAPAN locations worldwide.
SmartEquip has launched its parts e-procurement network Rental penetration rates are very high, equipment ownership
in Japan through a partnership with Tokyo-based Diamond runs long and operational efficiency and equipment lifecycle
Construction Equipment Corp. management improvement have a monumental impact
Diamond is co-owned by the four largest Japanese equipment on profitability – both for rental companies, as well as the
rental companies and Mitsubishi Corp. It provides long term manufacturers who supply and support them. These factors
re-rentals of excavators in Japan and other services, including together represent the perfect setting for the company’s value
transport logistics, and now also SmartEquip technology. The four propositions.
rental companies are nikken, Aktio, nishio Rent All and Kanamoto, The deal also gives SmartEquip a presence is a major rental
which together account for more than 35% of the Japanese market; The size of the global rental industry is estimated to
market. approach $150 billion in the coming years. Approximately $70b
SmartEquip is fully operational in Japan, with a growing number is for north America, and most of the rest is divided between
of local suppliers having gone live, and with one unnamed major Europe and the Asia Pacific (APAC).“
Japanese rental company in the pilot phase.
The two companies finalised the partnership in March of 2020 JbM AUTO LIMITED rECEIVES OrDErS FOr SUPPLY OF 500 CNG,
and since then have internationalised and commercially ELECTrIC bUSES
launched the platform. JBM Auto Limited has received orders for supply of 500 (five
The Japanese suppliers already on the network have not been hundred) CnG / Electric Buses as follows:
named, but IRn understands that they include major excavator • BS VI CnG Buses for Delhi Integrated Multi-Modal Transit
OEMs such as Kobelco, Hitachi, Kubota, Yanmar and Sumitomo. System Limited (DIMTS);
They join the equipment manufacturers in north America and in • Electric Buses for Bengaluru Metropolitan Transport
Europe already on the system. Corporation (BMTC).
SmartEquip’s e-procurement platform supports more than • Electric Buses for Jhansi - Smart City, uttar Pradesh.
uS$1 billion in parts transactions annually, connecting 600 OEM • Electric Buses for multiple corporate clients.
brands with 95,000 rental company users and 42,000 equipment These orders will be executed in the current financial year.

38 COnSTRuCTIOn OPPORTunITIES|OCTObEr 2021