DURBAN, South Africa (March 29, 2010) — Apollo Tyres South Africa Ltd. will invest $40 million in a three-year period in new equipment and technology to improve productivity at its tire factories in Durban and Ladysmith.
“This investment will make it possible for us to remain globally competitive and reduce production costs,” said Luis Ceneviz, Apollo Tyres S.A. CEO. “The technology and equipment we will be bringing on-stream over the next three years will remove certain bottlenecks in our production processes, further enhance product quality and reduce waste—a critical focus areaàfor an environmentally responsible tire manufacturer.”
Ceneviz saidthe investment will allow the company—known as Dunlop Tyres International prior to its being bought by India's Apollo Tyres Ltd. in 2006—to pursue an aggressive growth plan for Africa and Latin America.
The new investment announcement follows recently completed upgrades to the Dunlop and Ladysmith plants, totalling $33 million over the past few years. The expenditure should lead to the creation of more than 100 jobs.
Ceneviz said the investment is a “demonstration of our commitment to remain in the country and our continued belief in South Africa as an investment destination.”