Apollo to close tyre plant in Kerala, move production elsewhere

Mumbai, India - Premier Tyres Ltd - a subsidiary of the Apollo Tyres group - has informed Bombay Stock Exchange that it has decided to relocate the truck tyre manufacturing unit at Kalamassery to an unidentified location in the state of Kerala subject to approvals. Premier said the move will allow it to increase its production capacity, bring in modern equipment and technology, create better working conditions and increase employment.

The company said it would consider various options for development of the present site at Kalamassery and would reveal more details when plans are finalised.

The Kalamassery unit has been suffering from poor productivity and labour relations for some years. In the most recent example, workers went on strke at the end of December 2006 seeking wage increases. Apollo closed the plant temporarily at the time. Apollo owns another tyre plant in Perambra, located just 30 km away from Premier Tyres. The Perambra unit does not have the same history of poor productivity.

Meanwhile there have been persistent - but unconfirmed - rumours that Apollo is seeking to build a hospital and resort on the land at Kalamassery

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Premier announcement from Bombay Stock Exchange