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PM Orban inaugurates Apollo Tyres' 475 mn euro Hungary plant

Press Trust of India  |  Budapest 

Lending more depth to business ties with India, Hungary Prime Minister Viktor Orban today inaugurated Apollo Tyres' largest greenfield facility in the country with an investment of 475 million euros.

This is Apollo Tyres' sixth global manufacturing unit and the second one in Europe and its final capacity at the end of Phase I would be 5.5 million passenger car and light truck (PCLT) tyres and 675,000 commercial vehicle tyres.

There have been unexpected developments around the world in the global security arena, Orban said at his inaugural address.

"There will not be any compromise on safety and security issues whether during war or peace...Security of people living here will be prime," Orban said as he inaugurated the facility by breaking a coconut in the traditional Indian manner.

The Prime Minister said there were "well-educated pessimists who used to say opening towards the East is hopeless" but history is changing.

Now it has been proved that "anything from the East is increasingly dominant in the world and India is an example," he said.

Orban said that the investment by Apollo Tyres should not be viewed as foreign investment and this should be viewed as advancement in a close relationship as "you (Apollo Tyres) are not strangers, you are members of a large family of Hungarians."

He stressed that Hungary is the driving force in Central Europe and Apollo Tyres is at its centre adding that the bonds between India and Hungary were strong and were further consolidating.

Located less than 100 km from the capital Budapest, this is Apollo Tyres' first greenfield facility outside India, a highly automated plant with use of IT-driven systems and robotics, it employs young and skilled associates on the shopfloor, mostly hired locally.

Speaking on the occasion Onkar S Kanwar, Chairman, Apollo Tyres said, "With this inauguration today, of our Hungary 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 focussed company in Europe, we would soon be starting supplies of our tyres to all the leading OEs in Europe."

Built over 72 hectares, construction began at Gyongyoshalasz on April 10, 2015. The company is investing 475 million euros here and the final capacity at the end of Phase I would be 5.5 million passenger car and light truck (PCLT) tyres and 6,75,000 commercial vehicle tyres.

This facility will complement Apollo Tyres' existing facility in the Netherlands and produce both Apollo and Vredestein brand of tyres for the European market.

The Gyongyoshalasz facility will produce both Apollo and Vredestein branded tyres and will cater to the entire European market.

Apollo Tyres turnover stands at USD 1.8 billion, backed by a global workforce of around 16,000 employees.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, April 07 2017. 18:48 IST