Indian tyre giant Apollo Tyres Ltd. has revealed that the setting up of its manufacturing facility in Hungary is nearing its completion and the production would soon commence. The Hungary Greenfield Project, which started in 2015, is located close to Budapest and offers the strategic advantage of being in close proximity to various OEMs, thereby, creating a potential customer base. The company is hoping to roll out tyres from the new factory by first quarter of 2017.
Onkar S Kanwar, Chairman and Managing Director, Apollo Tyres Ltd., said, “Our globalization journey continues as the Hungary greenfield plans are on schedule and we will roll out the first tyre in the last quarter of the current fiscal. With the plant, we will be able to serve the European market with a larger product portfolio. Our game plan for Europe includes increasing the dealer network and the acquisition of the Germany-based Reifencom GmbH last year fits well into that strategy,”.
He added, “Apart from providing direct job to 975 people, of which majority would be hired locally, this facility will also lead to creation of indirect jobs and contribute significantly to the development of the region. As an organization, we strongly believe in ‘Care for Society’, and we would actively participate in addressing the health, safety and environment issues of the community.”
Apart from investing more than €400 million in the manufacturing, Apollo has established an R&D facility in Frankfurt in order to establish a strong hold in the European market.
The plant in Hungary will have a capacity to produce 5.5 million passenger car & light truck (PCLT) tyres and 675,000 heavy commercial vehicle (HCV) tyres per year. It would be the 9th manufacturing unit for Apollo, with already existing 4 units in India, 3 in South Africa and one in Netherlands.