Apollo facing skilled labour shortage for its Hungarian plant.
Apollo Tyres Ltd., the Indian major tyre manufacturer is building a half-a-billion-euro factory in eastern Hungary, but is having difficulty finding staff, a reflection to a wider problem faced by many foreign investors in Hungary.
With relatively cheap wage structure, Hungary is seen as an attractive base in Europe for manufacturers but, a brain drain left by skilled workers leaving for more lucrative pay packets in other parts of the Europe & elsewhere has limited the pool of available skilled labour.
Tibor Banyai, Head of Human Resources at Apollo Tyres Hungary, said of the situation, “The people with several years of experience that you could readily hire are just not there in the labour market for now.” Adding that, “The company remains optimistic that the Hungarian plant could open on schedule next January with the help of attractive wages offered to workers”.
Apollo has said in the past that by taking its manufacturing unit to Hungary, the company will be able to make itself much more cost competitive to sell in the US market.
Apollo is also hoping to supply tyres to carmakers such as Volkswagen, Daimler and Suzuki Motor Corp in Europe, while wages in Hungary remain low relative to countries in Western Europe, they rose 4 percent in December from a year earlier, according to the latest official figures, reflecting the skills shortage.