Apollo Tyres setting up greenfield plant around INR 3,460 cr in Hungary

Apollo Tyres is setting up Europe’s largest greenfield plant in Hungary with an investment of around 475 million euros (about INR 3,460 crore) to produce nearly 62 lakh tyres for passenger cars and heavy commercial vehicles per year. The facility will start production early next year and it will manufacture tyres for the entire European market.

Apollo Tyres (Hungary) KFT, Head – Project Controller, Amitabh Arya said, “Construction of Apollo Tyres’ first European greenfield plant at Gyongyoshalasz has started on April 10, 2015, and we will start production in early 2017. It will be Europe’s largest greenfield tyres plant.” The Hungarian facility will be a state-of-the-art plant and once completed it will have the capacity to produce 5.5 million (55 lakh) passenger car and light truck (PCLT) tyres and 6,75,000 heavy commercial vehicle (HCV) tyres per year.

The Hungarian government was very excited about the investment from a leading Indian tyre company. Hungarian PM Viktor Orban, at a joint press conference with visiting Indian Vice President Abdul Hamid Ansari last week, had specifically mentioned about the Apollo Tyres plant saying it was one of the largest foreign investments in Hungary.

The Gyongyoshalasz facility will produce both Apollo and Vredestein branded tyres and will serve to the entire European market. Apollo Vredestein B.V. is part of Apollo Tyres Ltd and has its head office in Enschede, the Netherlands. It designs, manufactures and sells high-performance tyres under the brand name Apollo and Vredestein in Europe and North America.

Onkar S Kanwar headed Apollo Tyres Ltd, headquarters in Gurgaon, is in the business of manufacture and sale of tyres since its inception in the year 1972. The company has grown manifold, establishing its footprint across the globe. It has manufacturing units present in the India and The Netherlands.

The company produces tyres under its two global brands—Apollo and Vredestein and its products are available in over 100 countries through a vast network of branded, exclusive and multi-product outlets. At the end of its financial year on March 31, 2016, Apollo Tyres had clocked a turnover of USD 1.8 billion, having global workforce around 16,000 employees.