Due to rising production costs, Indian tyre maker Apollo Tyres says that the Management board of Apollo Tyres NL BV has advised its Enschede plant’s Works Council of its intention to discontinue tyre production and related activities at the facility by 2026. About 500 workers will lose their jobs at the more than 100 year-old plant, which was bought by Apollo.
As recently as October 2023 Apollo Tyres still spoke of its “long-term commitment to production in the Netherlands,” but now it has stated that production will come to an end next year, citing unsustainable operating costs and declining demand for its specialised tyre lines.
The company’s decision follows years of warning signs. In 2019, the plant underwent mass layoffs, cutting 750 jobs. According to its most recent annual report, Apollo Tyres had already transferred sales operations and other assets from Apollo Tyres Vredestein to its European division in Hungary about 18 months ago. That Hungarian division opened in 2017.
The Dutch plant closure, still subject to consultation, signals broader pressures facing tyre manufacturers in Europe.
Apollo Tyres cited multiple economic pressures such as high energy and labour costs in the Netherlands; persistent inflation that has erased prior cost-saving gains; falling market demand for niche products like Spacemaster and agricultural tyres and competitive pricing pressure from lower-cost producers.
According to Apollo Tyres NL President Benoit Rivallant, cost-reduction initiatives have been undermined by sustained inflation, making continued operations at Enschede economically unviable.
The company has submitted a Request for Advice to its Works Council, initiating the required consultation period. Approval from the supervisory board is still pending.
Until the process concludes, Apollo Tyres NL has stated that production and business operations will continue without interruption.
Apollo Tyres operates other manufacturing and R&D sites in Hungary and India.