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.