Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Tire
    • Airless Tires
    • Non-Tire
    • More News
    • Suppliers
    • Silicone
    • Latex
    • Technical Notebooks
    • Opinion
    • Online Exclusive
    • Special Reports
    • Automotive
    • Executive Action
    • Government/Legal
    • Sustainability
    • Blogs
      • Products
      • Wacky World of Rubber
    • PFAS
    • Best Places to Work
    • War in Ukraine
    • International Tire Exhibition & Conference
    • Women Breaking the Mold
  • Rubber Division IEC
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • PFAS Live
    • Ask the Expert
    • International Tire Exhibition & Conference (ITEC)
    • Women Breaking the Mold Networking Forum
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
August 12, 2015 02:00 AM

Apollo to invest $425 million in plant expansion

Shahrzad Pourriahi
European Rubber Journal
  • Tweet
  • Share
  • Share
  • Email
  • More
    Onkar Kanwar

    KOCHI, India—Apollo Tyres Ltd. is planning to expand its truck and bus radial facility in Chennai, India, over the next two or three years, according to chairman Onkar Kanwar.

    The Chennai plant is being expanded with an investment of $425 million, an Apollo spokesman confirmed.

    The project, said the spokesman, will take the truck-bus radial capacity at Chennai from its current 6,000 tires per day to 12,000 tires per day. The plant produces 16,000 passenger tires per day.

    “Our decision in 2009-10 to invest in a truck and bus radial facility in Chennai has proven to be a wise one … To maintain this we are going ahead with further expansion in the capacity there,” Kanwar told shareholders at a general meeting on Aug. 11.

    In India, Kanwar said Apollo is going to have “other expansions and de-bottlenecking projects on the anvil at our plants here in Kerala and in Baroda.”

    Apollo's operations in Europe “continue to do well” and are being significantly ramped up with the start of construction at a $615 million greenfield facility in Hungary.

    Kanwar said he expected production to start at the Hungary plant in 2017, stating that it would allow Apollo to gain a better market share in Europe.

    Despite having exited its manufacturing business in South Africa, Kanwar said Apollo would retain its presence in the markets of South Africa and the African continent as a whole, supplying tires from its other plants with greater flexibility and efficiency. Apollo sold the bulk of its South African business in 2013 to Sumitomo Rubber Industries Ltd. and last year closed its remaining tire plant in Durban.

    According to Kanwar, sales offices in Dubai and Bangkok have established themselves and are opening new markets and new opportunities for the company.

    Kanwar said that Apollo's office in Singapore, opened during 2015, is set to begin operations as a purchase hub, but eventually would aim to serve as the firm's key base for global procurement, integrated supply chain, commodity trading and hedging.

    In the short-run, Kanwar said he saw the coming year as “another in a string of challenging years, with global uncertainties, talk of (quantitative easing) roll-back by the U.S. Federal Reserve, currency instability across much of Europe and slowing growth in large economies like China.”

    He did, however, foresee a slightly brighter year for India, saying “green shoots of a revival can now be seen.”

    The Apollo boss also addressed the issue of rubber prices, which he said “continue to be low is not because of imports or any other reason other than the fact that demand for all commodities has continued to stagnate.

    “This is a reflection of the (global) demand situation in the consuming industries, of which the tyre industry is the largest.

    Kanwar warned that artificial means of propping up prices would work in the long run in a globally connected economy like ours, adding that the only sustained effect on prices can be with a strong and buoyant economy.

    Related Articles
    Apollo breaks ground on Hungarian plant
    Apollo building retread franchise network
    Apollo appoints chief financial officer
    Apollo targets Iranian tire market
    Apollo selects former Pirelli CEO as adviser
    Apollo chairman calls for action on rising imports
    Apollo buys German tire distributor
    Floods disrupt production at Apollo's plant
    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Holcim adding capacity, looks for growth in roofing sector
    2
    Enso sets 2030 date to decarbonize its tires for EVs
    3
    Michelin says it is still committed to manufacturing tires in Germany
    4
    WDK warns of 'slow death' of German rubber industries
    5
    The Dune Express: Ram Enterprise installing enormous belt project
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Tire
      • Airless Tires
      • Non-Tire
      • More News
        • Automotive
        • Executive Action
        • Government/Legal
        • Sustainability
        • Blogs
          • Products
          • Wacky World of Rubber
      • Suppliers
      • Silicone
      • Latex
      • Technical Notebooks
      • Opinion
      • Online Exclusive
      • Special Reports
        • PFAS
        • Best Places to Work
        • War in Ukraine
        • International Tire Exhibition & Conference
        • Women Breaking the Mold
    • Rubber Division IEC
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • International Tire Exhibition & Conference (ITEC)
        • Women Breaking the Mold Networking Forum
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
      • PFAS Live
      • Ask the Expert
    • Advertise
    • DIGITAL EDITION