Apollo Tyres plans greenfield unit in Hungary

Apollo Tyres plans to set up a greenfield facility in Hungary. The likely site of the project is in Gyongyos outside Budapest, the capital of Hungary.

According to an official release issued by the company to the BSE today, this follows a meeting today between the Hungarian Prime Minister Ferenc Gyurcsany and Onkar S Kanwar, CMD, Apollo Tyres, on the sidelines of the Partnership Summit 2008.

The company will be entering into a formal agreement with the Hungarian authorities for acquisition of 50 hectares of land in Gyongyos. This will be a dedicated passenger car radial tyre plant with a 7 million tyres a year capacity in the first phase. Phase 1 of the project is expected to be completed in 18 months with a projected investment of Euro 200 million. Both parties have agreed to ensure a ground breaking ceremony at the new site early in the coming financial year, the release said.

Commenting on the agreement, Hungarian Prime Minister Ferenc Gyursacy said: "I am well aware of Apollo Tyres as a leading tyre manufacturer with a global expansion plan. We are very keen to have Apollo set up its first greenfield manufacturing unit, outside India, in Hungary. Apollo will bring to Hungary its world class manufacturing expertise, technology and people management skills."

"So far, this is the largest investment made by any Indian company in Hungary. This manufacturing facility in Gyongyos, Hungary, will become our hub to service our passenger car radial customers in Europe and North America. This is a key investment in our global strategy. The Hungarian Prime Minister, the Investment Agency and all officials associated with this decision have been immensely helpful throughout our negotiations," said Onkar S Kanwar, CMD, Apollo Tyres.