CHENNAI, India (Jan. 18, 2011)—Apollo Tyres Ltd. said has boosted the size of the investment it's spending for a passenger and truck tire plant in Chennai to $462 million from about $100 million.
The company disclosed the increased spending in a supplementary memorandum of understanding it signed with the government of Tamil Nadu, India's southernmost Province.
Apollo originally disclosed plans for the plant in early 2008 after it had acquired 135 acres of land near Chennai, the capital city of Tamil Nadu. At that time, Apollo said it was allocating $68 million toward the plant's first phase, which was to be completed by mid-2009.
The plant started production of passenger radials in March 2010 and produced the millionth tire this week. The plant is now producing 7,000 passenger and 1,300 truck/bus radials a day.
Capacity should double to 250 to 300 tons by 2012, according to Gaurav Kumar, head of corporate strategy and finance, speaking to financial analysts in January 2010, and expand again to 400 tons by 2013.
Apollo is targeting employment at the plant at 2,200.