Hungary plant – Apollo Tyres anticipates €300M investment by end of fiscal year

Apollo Tyres’ Enschede plant in the Netherlands has a 200 tonne per day capacity and currently operates at more than 90 per cent capacity utilisation, and to supplement output within the region the tyre maker is currently erecting a brand new factory in Hungary. During a conference call last week, Gaurav Kumar, chief financial officer at Apollo Tyres Ltd., confirmed that the company has planned a capital expenditure of €200 million for the project during the current financial year (1 April 2016 to 31 March 2017).

“The broad capex there (in Europe) is €200 million. We have spent about a quarter of that,” he shared. The CFO disclosed that investment in the Hungary up to June 2016 amount to €150 million: “We expect that by end of this fiscal year we would have spent close to €300 million for that project.

“The Hungary plant continues to progress well and we expect to start commercial production in the first quarter of calendar year 2017,” added Kumar.

Comments
Comments closed