Apollo Tyres will cut 750 jobs at its plant in the Netherlands over the next two years and plans to focus on producing only high-value tyres. The strategic aim is to specialise the Enschede plant to an extent where AVBV will only produce agricultural tyres and high value niche segment passenger car tyres with a short production run.
Apollo Tyres had acquired Vredestein Banden BV (VBBV) for an undisclosed sum in 2009 from Russia’s bankrupt largest tyre manufacturer Amtel-Vredestein NV.
AVBV intends to specialise the production in Enschede to a level where only high-performance Vredestein tyres will be produced at a profitable level, it added.
“Within the current operating environment certain tyre sizes can no longer continue being produced in Enschede at a sustainable and competitive level. The company therefore intends to specialise the plant towards high-value tyres and to secure a sustainable future in the Netherlands,” the company said.
“The operating environment for AVBV and the entire tyre industry has changed significantly over the last few years,” added Apollo Vredestein President Benoit Rivallant. “Despite large investments made in recent years in modernising the plant, the factory employees’ dedication and continuous efforts to make the site economically viable has proved ineffective against the accelerated market transformation and has required a strategic adaption of the site to secure it has a sustainable future in the long run,” he added.
Apollo Tyres Ltd. came into inception in 1972 and has since been a trusted name in the business of manufacture and sale of tyres. With our corporate headquarters in Gurgaon, India, we cater to over a 100 countries across the globe. The company markets its products under our two global brands: Apollo and Vredestein. These products are available in countries across the globe through a vast network of branded, exclusive and multi-product outlets. Apollo Tyres has multiple manufacturing units in India, the Netherlands and Hungary. At the end of the financial year 2019, the company clocked a turnover of US$ 2.48 billion, backed by a global workforce of approximately 17,200 employees. The company trades in India on the Bombay Stock Exchange and National Stock Exchange, with 59.10% of shares held by the public, government entities, banks and financial institutions.
