New Delhi: Apollo Tyres Ltd on Wednesday said it will start rolling out products from its 475 million euro green field plant in Hungary by 2017.
The company's board has approved the setting up of the facility that will have a total capacity of 5.5 million passenger car and light truck (PCLT) tyres and 6,75,000 heavy commercial vehicle (HCV) tyres per annum.
The facility, which will come up at the new industrial zone near Gyongyoshalasz, will produce both Apollo and Vredestein-branded tyres and will cater to the entire European market, and will complement Apollo Tyres' existing facility in the Netherlands.
"This investment would be our first one into a green field facility outside of India and would be a significant milestone in the company's international growth journey. Our aim is to create a benchmark manufacturing facility, which would further increase our competitive strength in the European market," Apollo Tyres vice chairman and managing director Neeraj Kanwar said in a statement.
The construction of the plant is expected to start in the spring of 2015 and the first tyre is likely to roll out in early 2017, the company said.
"Apart from providing direct job to 975 people, of which majority would be hired locally, this facility will also lead to creation of indirect jobs and contribute significantly to the development of the region," Mr Kanwar said.
Currently, Apollo Tyres has four manufacturing units in India, three in southern Africa and one in the Netherlands. The combined production capacity of all facilities put together is 1,700 tonnes per day.
The company decided to go ahead with the new plant in Eastern Europe after its failed $2.5 billion takeover of US-based Cooper Tire.
Shares in Apollo Tyres, on Wednesday, ended at Rs 201.30 apiece on the BSE, up 2.91 per cent from the previous close.