Apollo Tyres confirms Hungary as site for its first International Greenfield Facility

The Indian tyre maker has confirmed that Hungary will be its location for the first Greenfield facility that it plans to set up outside India. This move comes after gaining the necessary approvals from the Board of Directors. This country was chosen over other locations after a lot of consideration and factors that pertain to neighbouring Central Eastern European and Asian countries.

The tyre maker is set to invest Rs 3,726 core over the next five years to set up this facility in the new industrial zone near Gyongyoshalasz, Hungary. Once completed, the plant will have a capacity to produce 55 lakh passenger car and light truck tyres and 6.75 lakh heavy commercial vehicle tyres annually. Apollo will produce both Apollo and Vredestein branded tyres at this new facility, and it will cater to the demand of the entire European market while further complementing the company’s existing facility in the Netherlands.

Commenting on this decision, Neeraj Kanwar, Vice-Chairman and Managing Director, Apollo Tyres Ltd said, “This investment would be our first one into a Greenfield facility outside of India and would be a significant milestone in the company’s international growth journey. Our aim is to create a benchmark manufacturing facility, which would further increase our competitive strength in the European market.”

“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 organisation, we strongly believe in ‘Care for Society’, and we would actively participate in addressing the health, safety and environment issues of the community,” he further added.

Currently, Apollo Tyres has four manufacturing units in India, three in southern Africa and one in the Netherlands. The combined production capacity of all facilities put together is 1,700 tonnes per day.