ERJ staff report (DS)
New Delhi - Apollo Tyres has formulated plans to spend $1 billion on expansions and investment globally in the next 5 years. An interview with the Press Trust of India quotes Neeraj Kanwar saying, â€œOver the next five years, we will be setting up two new greenfield plants, one either in Thailand or Indonesia and another in Eastern Europe in a phased manner,â€ A spokesman for Apollo said the article faithfully represents Kanwar's views.
Kanwar continued, â€œAll these projects put together, including our Kerala and the Netherlands units, we are looking at an investment of $1 billion.â€
The Netherlands project has been heavily trailed and involves an expansion of capacity at Enschede to 7.5 million units/year from the current 6 million.
Similarly, the project in Kalamaserry involves converting the unit to off-road tyres.
The report quoted Kanwar saying, â€œThe first phase of the South East Asia project will entail an investment of about $250-300 million. The initial capacity of the plant will be 16,000 units of passenger car radials (PCRs) per day and 1,500 units of truck and bus radials a day (TBRs).â€
The report says a second phase worth some $200 million will add PCR capacity of 24,000 units per day and TBR capacity of 3,000 units day. He said the sequence will be to build the first phase in Asia, then a first phase in Europe, followed by the second phase in Asia. â€œAs of now, we have put our earlier plans to set up a plant in either Poland or Hungary on the backburner,â€ he said.
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Press Trust of India via The Hindu Business Line (India)