Apollo Tyres today opened its first greenfield investment outside of India, a more than 72 hectare factory that cost EUR 475 million, and is located in Gyöngyöshalász, less than 100 km from Budapest.
The Hungarian government has supported the investment with a grant of HUF 16 billion. The plant, which is Apollo’s second in Europe, will put out two million tires a year once it reaches full capacity at the fall of 2018.
“With this inauguration today of our Hungarian greenfield facility, we have crossed another milestone in our global growth journey. This facility will help us further increase our presence and market share in Europe. From being a replacement market focused company in Europe, we would soon be starting supplies of our tires to all the leading OEs in Europe,” said Onkar S Kanwar, chairman of Apollo Tyres.
The final capacity at the end of Phase I will be 5.5 million passenger car and light truck (PCLT) tires and 675,000 commercial vehicle tires. This facility will complement Apollo Tyres’ existing factory in the Netherlands, and will produce both Apollo and Vredestein brand tires for the European market.
The inauguration also marks 40 years of the company being in the business of making and selling tires.
The inauguration was attended by Prime Minister Viktor Orbán, Foreign Affairs and Trade Minister Péter Szijjártó, Ambassador of India to Hungary HE Rahul Chhabra, Apollo chairman Onkar S Kanwar and Apollo vice chairman and managing director Neeraj Kanwar, as well as the company’s board of directors and its senior management team.