Focus on industry
Apollo opens tire plant in Hungary, looks for growth in the U.S. By Greg Smith
T
he opening of Apollo Tyres Ltd.’s new $500 million consumer and commercial tire plant outside of Budapest, Hungary, last month was a huge global event. Said to be the largest investment by an Indian-based company in Hungary, the grand opening drew a visit from Hungary’s Prime Minister Viktor Orban. There were 1,400 people at the opening, plus 16,000 employees of Apollo watching worldwide. Modern Tire Dealer was among the various media also represented at the event. This is Apollo’s first greenfield plant outside of India, and a further indication of Apollo’s commitment to growing its presence in Europe. During its 2015-2016 financial year, Apollo reported annual worldwide sales of $1.8 billion. “With this inauguration today of our Hungary greenfield facility, we have crossed another milestone in our global growth journey,” said Onkar Kanwar, Apollo Tyres Ltd. chairman. “This facility will help us further increase our presence and market share in Europe. “From being a replacement marketChairman and Managing Director Neeraj Kanwar (left), Hungary Prime Minister Viktor Orban focused company Vice and Chairman Onkar Kanwar celebrate the opening of the Apollo Tyres Ltd. plant in Budapest. in Europe, we will soon be starting supplies of our selling to premium car makers with its Vredestein brand. tires to all the leading OEs in The facility is the company’s second plant in Europe. It is in Europe.” addition to Apollo’s existing plant in the Netherlands, and will Neeraj Kanwar, vice chair- produce both Apollo and Vredestein tires. The highly automated man and managing director plant features IT-driven systems and robotics. The final capacity of Apollo, made it clear of the plant at the end of Phase I will be 5.5 million passenger during a press conference and light truck tires and 675,000 truck tires. About 500 people that the new factory will will work at the facility when fully operational. be an OE plant and that It took two years and 7,000 workers to construct the plant, the company wants the which is located on 178 acres. The facility itself takes up 37 acres, plant’s production to with a “green area” accounting for 42 acres. eventually be 25% OE The inauguration also marks Apollo’s 40th anniversary for the tires versus replacement manufacturing and selling of tires. Apollo originally produced bias tires. He further added that truck tires, and slowly ventured into consumer tire production, the company expects to be then radial truck and bus tire manufacturing.
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MTD May 2017
