New Delhi, Aug 18 (UNI) Apollo Tyres today said it has withdrawn its application to set up greenfield facility in Gyongyos, Hungary and is in the process of evaluating other locations.
''The decision follows unexpected delays in administrative processes required for the start of the 200 million euro greenfield investment. We are determined to meet its obligations to supply our European partners with state-of-the art tyres, therefore it will seek an alternative location elsewhere in Hungary or Europe,'' company Vice Chairman and Joint Managing Director Neeraj Kanwar said in a company statement.
Earlier this year, Apollo had announced the selection of Gyongyos as the site for its first overseas greenfield investment, directly employing about 1,000 people.
The Hungarian plant was expected to commence production by June 2009 with an annual capacity of seven million tyres.
The company, had since, set up a Hungarian subsidiary, added an Information Office in Gyongyos and initiated the necessary proceedings in order to receive administrative clearance for its planned investment.
Apollo Tyres has requested the Hungarian Investment and Trade Development Agency (ITDH) to identify alternative locations for the unit.
The company has received interest from 10 potential sites, including some from Slovakia, it said.
Apollo Tyres, which is also investing around 320 million dollars in India and South Africa to boost capacity, said the cancellation may have ''a short-term financial and resource allocation impact''.
Separately, the company has also declared a lock-out at its plant at Perambra in Kochi from August 16, due to ''labour problems''.
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