NEW DELHI: Apollo Tyres plans to invest €442.2 million (about Rs. 34.5 billion) in Hungary to set up a new plant in India, with investment support from the Hungarian government and approval from the European Commission.

The project will see an investment of 442.2 million euros and is expected to create more than 975 jobs. The project will take place in Gyngyshalsz in northern Hungary, the European Commission said in a statement.

Apollo Tyres received 95.7 million euros in local investment support for the construction of the tire factory, the European Commission said. It added that the aid for Gyngyshalsz (northern Hungary) was in line with EU state aid rules.

“The Commission found that the support provided by Hungary would favor regional development and limit distortions of competition.”

Commenting on the development, Joaqun Almunia, Vice-President of the Commission responsible for competition policy, said:

“The Apollo Hungary investment program is expected to create 975 new jobs in Gyngyshalzzz. This will make a significant contribution to regional development without unduly distorting the “single” market. competition in the market.

A spokesperson for Apollo Tyres would not comment on the matter.

According to the European Commission, Hungary announced plans in June 2014 to support the construction of a new tire plant with direct subsidies of 48.2 million euros, employment subsidies of 2.8 million euros and tax breaks of about 44.7 million euros.

Because this project is located in szzzak-Magyaroszg The region has a high unemployment rate and a GDP well below the EU average, it must comply with Article 107(3)(a) of the Treaty on the Functioning of Europe. Union (TFEU) Local support is available for this project.

The European Commission said, “National support is provided within the framework of existing support schemes, but the higher the amount of support, the higher the risk of distorting competition, which must therefore be notified to the Commission for separate assessment and approval.”

In August last year, Apollo Tyres announced that it would invest 500 million euros in a new plant in Eastern Europe. The company expects to have an annual production capacity of 5.5 million passenger car tires and 675,000 heavy commercial vehicle tires.

The company decided to go ahead with the construction of a new plant in Eastern Europe after a failed $2.51 billion acquisition. OS Cooper Tires USA.