India’s Apollo Tyres to Build Plant in Thailand

Gurgaon, India-based Apollo Tyres Ltd. says it will invest $500 million to erect a radial tire factory in Thailand to expand the company's presence in southeast Asia.

Apollo plans to open a Bangkok sales office next month that will lay the groundwork for opening a plant in the country within several years. Analysts note that building in Thailand would give the company direct access to local rubber production.

Apollo envisions a facility with daily production of 16,000 passenger tires and 1,500 bus tires. About 80% of the output will go to southeast Asian markets and the balance to Europe and Latin America.

The plant is part of the company's five-year, $1 billion expansion plan, which also includes a new factory in eastern Europe and increased capacity in India and the Netherlands.

Apollo, which produces tires under the Apollo, Dunlop and Vredestein brands, also has factories in South Africa and Zimbabwe.