Apollo Tyres All Set To Make Euro 200 Mn Plant In Hungary
Tyre manufacturer, Apollo Tyres has decided to establish a greenfield manufacturing plant in Gyongyos, Hungary with a total investment of around 200 million euros.
Mr. Onkar Kanwar, Apollo Tyres Chairman and Managing Director said, “So far, this is the largest investment made by any Indian company in Hungary. This manufacturing facility in Gyongyos will become our hub to service our passenger car radial customers in Europe, North America as well as other countries. This is the key investment in our global strategy.”
The company will be signing up a formal contract with the Hungarian authorities for purchase of 50 hectares of land in Gyongyos.
The company said that the new facility would be a dedicated passenger car radial tyre plant having a capacity of seven million tyres during the initial phase. The company would appoint around 1,000 people in the first stage.
The ground breaking ceremony is expected to be held on April 13, 2008 and the unit is expected to be prepared by June 2009.
The plant would also make ultra-high SUV tyres.
Mr. Kanwar said that the unit is likely to make earnings of 300-400 million euros from 2010 onward from European business.
This is the Apollo’s first green field construction plant outside India.
The company’s directors have approved Rs 2.2 billion for construction of a world-class green field radial facility in the acquired 135 acre of land in the Oragadam industrial park outside Chennai.