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Apollo Tyres To Invest 500 Million Euros For New European Facility
Apollo Tyres is planning on investing 500 million euros in eastern Europe to strengthen their global operations. The company is yet to finalise the location and is planning to commission this in three years time.
After an unsuccessful attempt by them last year to acquire the US based Cooper Tyres, they are not planning on any acquisitions for the time being.
While building this new factory from scratch, the company will also expand its capacity in Chennai investing in products like Off-The-Road tyres (OTR), as they are being demanded in markets worldwide.
The planned European factory will have the capacity to manufacture 55 lakh passenger car tyres and 6.75 lakh heavy commercial vehicle tyres per year. The company will sell tyres to both auto manufacturers and to the replacement market.
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Apollo Tyres has manufacturing facilities in other countries like the Netherlands and South Africa. They also have operations in countries like Thailand, Dubai, Australia and Brazil.
In India, the company plans on investing INR 1,500 crore for the Chennai plant to increase production to 9,000 tyres a day from 6,000 currently being manufactured. The factory in Kalamassery, Kerala, will be transformed into a hub for production of off-road tyres by investing INR 500 crore in the next three years time, with exports kept in mind.
Considering the shrinking market for cross-ply tyres, they are looking at new products like off-road tyres. The company may slowly adopt the same strategy at its two bias-tyre producing units at Perambra in Kerala and in Vadodara as well.
The company is hoping the heavy commercial vehicle tyre market in India will grow in the second half of this year.
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