Apollo Tyres continue to see investing potential in South Africa following its launch of new state-of-the-art Component Preparation Unit at the Ladysmith tyre manufacturing facility in South Africa.

The 6500 square metres unit, which has the potential for further expansion to facilitate future growth, has been installed with an investment of R300 million ($35 million).

This component unit will feed both the Durban and Ladysmith manufacturing units of Apollo Tyres South Africa, thereby increasing the commercial vehicle tyre capacity of Durban by 20 per cent, and the Ladysmith passenger vehicle and light truck tyre capacity by 30 per cent.

The new unit will remove capacity bottlenecks and further improve quality and productivity, while enabling capacity expansion.

According to the Chairman Apollo Tyres Ltd, Onkar S Kanwar; “…despite the challenges of the overall economy, at Apollo we will continue to invest in our people, plants and processes to strengthen Apollo Tyres South Africa for expansion into the African continent. South Africa has enormous potential and all of us need to work together to realise it.”

Also present at the launching were Dudu Mazibuko, District Mayor and M Madlala, the Mayor of Ladysmith.

“This is a continuation of our efforts to modernise and upgrade our plants to enable us to capitalise on upcoming growth across the African continent. In a similar manner given the acute shortage of skilled artisans, we have a programme in place to train young talent with mechanical aptitude. This has already brought into the fold young talent from the community,” said Dr Luis Ceneviz, Chief Executive Officer, Apollo Tyres South Africa (Pty) Ltd.

Since its purchase of the former Dunlop Tyre facilities in South Africa, Apollo has invested around R700 million ($85 million) towards upgrading machinery and increasing manufacturing efficiencies in both plants.

On May 10, 2012 Apollo Tyres’ Board of Directors announced the company’s audited financial results for the 4th quarter (January- March) and the financial year 2011-2012. In the report, it stated that the company’s annual revenue crossed the $2.5 billion mark.

It also recorded a growth rate of 37% during the period.