Apollo Tyres closes 300 million euro financing for Hungary plant

NEW DELHI: Apollo Tyres today said it has closed a 300 million euro financing for its upcoming manufacturing plant in Hungary.

The company has successfully closed a 300 million euro financing for its greenfield plant in Hungary, Apollo Tyres said in a statement.

An international consortium of banks comprising ABN AMRO Bank NV, Magyar Export-Import Bank, Raiffeisen Bank, Standard Chartered Bank and UniCredit Bank Hungary, supported the company and provided the debt financing, it added.

The company began construction of the plant earlier this year with a total investment outlay of 475 million euro.

"We thank our consortium partners who provided appropriate solutions to the specific financing needs for the project and facilitated a smooth execution," said K Prabhakar, Managing Director, Apollo Tyres Hungary.

The first product is expected to be rolled out from the plant in early 2017 and the facility will create around 1,000 jobs in the country.

The plant will have a capacity to produce 5.5 million passenger car and light truck (PCLT) tyres and 6,75,000 heavy commercial vehicle (HCV) tyres per annum.

"This facility will complement Apollo Tyres' existing facility in the Netherlands, bringing the whole range of Apollo and Vredestein branded tyres to the European market," the company said.

Apollo Tyres shares today ended 3.40 per cent up at Rs 179.25 apiece on the BSE.