Apollo Tyres to Receive OTR Investment Loan from BEML

In 2007 Apollo Tyres entered into an agreement to supply OTR tyres to Indian mining equipment manufacturer BEML, and on February 13 the tyre maker announced it will receive a Rs 1 billion (£14.45 million) loan from the state-owned enterprise to cover the costs of a new facility that will meet anticipated BEML demand. The first phase of Apollo’s new OTR tyre facility in Gujarat, being built at a total cost of Rs 1.2 billion (£17.34 million), will be dedicated to output for the equipment manufacturer. Further investments to boost the production of radial OTR tyres will also be made over the next three years, Apollo announced.

While the first batch of tyres from the new facility has already been shipped to BEML, the factory is expected to commence continuous production in March.