Apollo signs financing deal on €0.5 billion investment
The negotiations for a €300 million financing deal for an investment by Apollo Tyres in Hungary has successfully ended. According to an agreement reached this week, the total costs of the investment will amount to €475 million.
The company has announced that the loan necessary for the investment will be provided by an international consortium consisting of ABN AMRO Bank N.V., Magyar Export-Import Bank Zrt., Raiffeisen Bank Zrt., Standard Chartered Bank and UniCredit Bank Hungary Zrt.
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Construction work for the €475 milion greenfield investment began in April 2015. The first products will roll off the production line in early-2017, and the plant will create hundreds of new jobs.
"I would like to thank our consortium partners, who provided special financing option for the project and significantly contributed to allowing us a smooth execution," said K. Prabhakar, CEO of Apollo Tyres Hungary.
The new unit in Hungary, equipped with the most advanced technologies will manufacture 5.5 million PCLT tyres and 675,000 tyres for heavy-duty vehicles every year, complementing the production operation of the group's Dutch plant, thus making available their entire Apollo and Vredestein product line in Europe.
