Chennai-based well-known Tyre manufacturer MRF Ltd has notified that the company has signed a MoU with the Tamil Nadu government for setting up a new radial tyre facility in Perambulur and for expansion of its existing two plants in the state.

The company is acquiring nearly 290 acres of land for its new facility in Perambulur and the facility is expected to have a total capacity of 7,00,000 radial tyre units.

According to an official statement, the project will cost the company Rs 900 crore and will provide direct employment to 2,500 persons in the first phase and to 5,000 in the second phase.

This will be the companys' third plant in the state. Outside Tamil Nadu, the company has manufacturing facilities at Puducherry, Kottayam, Goa and Medak.

The share of the company closed today at Rs 4607, up 1% compared with previous close of Rs 4543. It touched an intraday high and low of Rs 4850 and 4524 respectively.