Chennai, Feb 12 (IANS): Tamil Nadu Chief Minister K. Palaniswami on Wednesday said a petrochemical plant in the state would not only help domestic tyre companies to locally source synthetic rubber but also create jobs.

Inaugurating the CEAT Ltd's Tyre plant near here Palaniswami said presently tyre companies import a crucial raw material synthetic rubber.

He said a petrochemical project in the state would enable the tyre makers to source the raw material locally and the project would generate jobs.

The Tamil Nadu government has signed Memorandum of Understanding (MoU) with Haldia Petrochemicals Ltd in September 2019 for setting it's units with an investment of Rs 50,000 crore in Cuddalore district.

The state has also signed a MoU with Al Kharafi for an oil refinery in Thoothukudi involving an outlay of Rs 49,000 crore.

According to Palaniswami, CEAT now joins other tyre makers like MRF Ltd, Apollo Tyres, JK Tyres and Michellin Tyres by seeting a tyre factory in the state.

"From two wheeler tyres to tyres for fighter aircrafts are made in Tamil Nadu," Palaniswami said.

He said 40 per cent of India's tyre production is located in Tamil Nadu.

Palaniswami also said he has requested Anant Goenka, Managing Director, CEAT to set up a research and development centre in the state.

According to Goenka the new plant will roll out about 28,000 passenger car tyres.

He said the company plans to invest Rs 4,000 crore inthe plant in phases and a sum of Rs.1,400 crore has gone into the plant now.

Goenka said 40 per cent of the plant workforce are women.