Apollo comments following financing deal for Hungary Greenfield plant
Apollo secured 300 million euros’ financing for its Greenfield plant in Hungary, on which construction started in April 2015, bringing total investment to 475 million euros. The first product is expected to roll out in early 2017 and the facility will create approximately 1,000 jobs in the country. Commenting on the closure of the financing, K Prabhakar, managing director of Apollo Tyres, Hungary said, “We thank our consortium partners who provided appropriate solutions to the specific financing needs for the project and facilitated a smooth execution.”
The completed Hungary facility will have capacity for 5.5 million passenger car & light truck tyres and 675,000 heavy commercial vehicle tyres per annum. The facility will complement Apollo’s existing facility in the Netherlands, bringing the whole range of Apollo and Vredestein branded tyres to the European market. This plant is located fewer than 100km from Budapest (capital city of Hungary) and has close proximity to various original equipment manufacturers as potential customers.