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Apollo to set up Hungarian tire plant

Indian Apollo Tyres is to build a tire factory in Gyöngyös through a €300 million investment, said Ferenc Gyurcsány in New Delhi.

India’s leading tire producer is planning to create employment for staff of 1500 in 2 phases, according to Hungarian Investment and Trade Development ITDH Kht. The decision was primarily based on calculated reach cost (the cost of delivering the product to the end user). Hungary was competing with a Slovakian location, and won despite giving an offer €4 million lower. Hungary provides Ft 7 billion discount for the investor, representing one-third less subsidy that granted to Hankook. The construction will start in mid April, and production will be launched 18 to 20 months after that. Projected annual capacity is 7 million tires for SUV’s and cars, to be distributed on the European market. Most of the employees will be Hungarians: 900 in the first phase, and another 500 in the second. The company bought a 4,500-acre area from Gyöngyös Industry Park Development Kft. A 1,000-acre assembly hall will be built in the first phase. Unemployment is over 10% in the Gyöngyös area with 50,000 population. This investment will probably improve the rate. (Napi Gazdaság)