EMCC European Monitoring Centre on Change

Apollo Tyres

Company/Organisation:
Apollo Tyres

Geographic Location

Country: Hungary
Region: Heves; Eszak-Magyarorszag; Alfod es Eszak
Location of affected unit(s): Gyöngyös

Company

Sector: Manufacturing
Manufacture of rubber and plastics products, and other non-metallic mineral products
22.11 - Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres
Group: Apollo Tyres

Employment Effects

Announcement Date: 16-01-2008
Type of Restructuring: Business expansion
Employment Effect Start: 01-02-2008
Foreseen End Date: 31-12-2010
Planned Job Creation: 1500

Additional Information

Apollo Tyres, India's largest tyre manufacturer, is to create 1500 new jobs by developing a new plant in Gyöngyös, Northern Hungary, near Budapest. So far the plant is the biggest investment by an Indian firm in Hungary, which will reach €200 million in the next 18 months. It is expected that 900 jobs will be created in the first phase and another 600 people will be employed in the second phase in 2010. Primarily unskilled workers will be employed. Production would be in the scale of seven million tyres per year and would serve primarily European and North American markets. The Hungarian governement offered subsidies in the amount of HUF 7 billion (€27.43 million) for the investment.