Apollo to build 500 million euro tyre factory in Eastern Europe

Apollo Tyres’ board has approved plans to build a new tyre factory in “Eastern Europe”, with 500 million euros earmarked for the project. According to the company, the greenfield project will see the tyre manufacturer invest half a billion euros over the next years, funded by “accruals and debt at the company’s European subsidiary”. The capacity is expected to be 16,000 passenger car radial (PCR) tyres a day and 3000 truck and bus radials a day.

Company chairman Onkar Kanwar commented: “We are aggressively pursuing organic growth opportunities. Considering the increased demand for our tyres in Europe, along with capacity constraints in our existing facility in Enschede, the Netherlands, has made us prioritise our investment into a greenfield facility in the region.”

The news follows Apollo’s failed takeover of Cooper during 2013, which led to press comments from managing director Neeraj Kanwar insinuating that if the company couldn’t expand in a partnership with another company it would have to do what it takes by itself. This is clearly what was meant.

Apollo’s latest European plant venture follows on the back of earlier interest in an Eastern European plant. Back then, all roads led to a site in Hungary. However, the subsequent purchase of Vredestein in 2009 then became the focus and a few years later attentions turned back to the erstwhile Cooper purchase. Now it seems – as was widely expected – Apollo is setting its sights on Eastern Europe.