labels: tyres, economy - general, apollo tyres
Apollo Tyres may acquire Chinese factorynews
James Paul
27 July 2002

Kochi: Apollo Tyres Ltd is bidding to take over a tyre factory in China, according to its vice-chairman Onkar S Kanwar. Negotiations are at an advanced stage. "We are bidding for 70-per cent control of the factory. Upon takeover, we will be prepared to invest 15 to 20 million US dollars."

Premier Tyres in Kalamassery near Kochi, taken over by Apollo as a wholly owned subsidiary in 1995, is facing problems due to low productivity, he says. "We will have to close down the unit unless the workers there cooperate to improve productivity. Just 40 per cent of the capacity is getting utilised now." Three things are urgently needed to keep the unit up. The management needs total flexibility, productivity should be stepped up and the workers [need to] agree to reduction in manpower, says Kanwar. The company wants every unit to be made a profit centre and the workers should adjust themselves with this concept, he says. Though seven years have passed since the unit has been taken over, the old mindset of the workers has not changed yet. Production at the company's Perambra unit will be increased from 130 to 200 tonnes by November 2002, he adds.

 


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Apollo Tyres may acquire Chinese factory