India’s Apollo Tyres plans greenfield tyremaking plant in Indonesia or Thailand | Wires
(The Insider Stories) — India’s Apollo Tyres Ltd. (500877) is zeroing in on a location in Indonesia or Thailand for a greenfield facility to manufacture passenger car tyres and truck and bus radials with an investment of around 1.6 billion rupees (US$294 million/IDR2.85 trillion) in the first phase.
“We are in the final stages of discussions with the Thailand and Indonesian authorities for the location of this facility and are aiming to get the unit ready in two years,” Apollo Tyres managing director Neeraj Kanwar says in a media report.
The plant will be paid for from internal accruals and debt and will have initial capacity of 16,000 passenger car tyres and 1,500 truck/bus radials a day, catering for the Asean region and China. ”One of the factors why we have planned the unit in this region is that it is the hub for natural rubber,” Neeraj Kanwar said. Indonesia is the second-biggest natural rubber producer after Thailand.
The new plant will help the company to achieve an aim of around INR3.25 billion turnover by 2016 that would put it in the top ten global tyre manufacturers. Production capacity of 1,750 metric tons a day and consolidated revenue of INR1.35 billion in 2011-12 place the company in 16th position globally, the reports say.
