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Apollo Tyres to Invest in Hungary

2014.09.18.

Indian company Apollo Tyres announced an EUR 467 million (146 billion HUF) investment in Hungary on Wednesday. The investment would entail the construction of a state-of-the-art tire manufacturing facility, capable of producing 16.000 car tires and 3.000 lorry tires a day, state secretary Péter Szijjártó announced.

Apollo Tyres managing director Neeraj Kanwar said the plant in Gyöngyöshalász (in northern Hungary) would complement production at Apollo Tyres’ unit in the Netherlands. It will make Apollo and Vredestein brand tire for the European market, which includes Russia and Turkey, he added.

Szijjártó said the Hungarian government was awarding Apollo a cash investment subsidy of 16 billion forints. Apollo Tyres aimed to tap local talent and cooperate with institutions of higher education in the area of research and development. The cornerstone of the plant is expected to be laid in the spring of 2015, and the first tire could roll off the production line early in 2017.

Apollo Tyres Ltd is the world’s 17th biggest tyre manufacturer, with annual consolidated revenues of EUR 1.57 billion in 2011. It was founded in 1976 and their first plant was commissioned in Perambra, Kerala. The Hungarian investment is seen as a major step in acquiring a strong foothold on European markets.

via HungaryMatters, MTI photo Lajos Soós