Apollo ‘yet to finalise’ greenfield tyre factory location
Following news reports that Apollo has chosen Hungary as the location of its new tyre plant, the company has released a statement reiterated its plans and stating that it is “yet to finalise the exact location” for its factory.
In answer to questions from Tyres & Accessories, Apollo Tyres representatives wrote: “The Board of Directors at Apollo Tyres, at a recently concluded meeting, approved the greenfield in Eastern Europe, at a project cost of approximately 500 million euros over the next four years, funded with accruals and debt at the company’s European subsidiary. The planned capacity is expected to be 16000 passenger car tyres and 3000 truck bus tyres per day. The company is yet to finalise on the exact location for this Greenfield facility.”
Therefore we know what we knew – that there would be a 500 million euro factory in Eastern Europe and that it would be a greenfield site producing car and truck tyres – but we are none the wiser as to where it will be. The fact that Slovakian officials are saying it is not there is likely to be significant and there are many reasons why Hungary is a good option, but it is clear that talks are continuing and nothing concrete is in place.