The Apollo Tyres NL BV board has submitted a request for Advice to the Works’ Council. This concerns the intended decision to discontinue tyre production and production-related activities at the plant in Enschede, the Netherlands. All by the summer of 2026. All staff members were informed accordingly during a town hall meeting.
Investigation and Careful Consideration Sparks Closure
This intended decision comes after a thorough investigation and careful consideration by Apollo Tyres. It is driven by the continued increase in costs at Apollo Tyres NL due to macroeconomic disruptions and steep increases in energy and labour costs. Additionally, there is a decline in demand for Spacemaster and Agri tyres.
These, together with pricing pressure from low-cost competitors, make the manufacturing at ATNL uncompetitive. Unfortunately, the high-cost situation is expected to continue. Therefore, long-term profitable production at Enschede is not feasible.
“Submitting the Request for Advice to the Works’ Council on the intended decision to discontinue production has been enormously difficult”, said Benoit Rivallant, President of Apollo Tyres, Netherlands.
“In the last couple of years, we have implemented several initiatives to reduce costs at Enschede. These initiatives resulted in some savings, but most of these were completely negated due to the ever-increasing inflation. After a thorough investigation, we saw no other option than to recommend the discontinuation of the production activities at Enschede as the Management Board of Apollo Tyres NL BV.”
“We take our obligations toward our employees and the Work Council very seriously. ”
Rivallant goes on to say, “We have engaged with them in line with these obligations and will continue to do so. We will also communicate with customers, suppliers, and other parties across the value chain and continue to do business as usual.”
“There is no change in our working relationship, and we continue to focus on providing exceptional customer service. The execution of the intended decision is subject to completion of the Works Council consultation process and supervisory board approval.”
