Japanese tyre maker, Yokohama increased production capacity at its Haryana, India manufacturing plant to 1.5mn tyres a year as it completed its second phase of expansion. This will drive demand for zinc oxide, mostly in the north, which will in turn drive demand for zinc dross.

 

Almost 60pc of zinc oxide is consumed by tyre companies. Of late, tyre demand has picked up with auto companies ramping up production to meet high anticipated demand in the coming months. Also, tyre imports were restricted by the government in June which has upped domestic demand.

 

Yokohama begun its operations in 2014 with an initial capacity of 0.7mn tyres per year which has now more than doubled to 1.5mn tyres. Yokohama caters to Audi, Nissan, Mitsubishi, Toyota and others. Most auto companies reported improved sales growth in July and demand is expected to move up from here. 

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