Apollo Tyres to Close Enschede Plant in 2026

New Delhi, Apr 25 (PTI) Apollo Tyres on Friday said it will discontinue tyre production at the Enschede-based plant in the Netherlands from next year.

The board of Apollo Tyres NL BV has submitted a Request for Advice to the Works Council on the intended decision to discontinue the tyre production and production-related activities at the plant in Enschede, the Netherlands by the summer of 2026.

All staff have been informed accordingly in a town hall meeting.

Apollo Tyres NL BV (ATNL), a Dutch manufacturer of pneumatic tyres for cars and agricultural vehicles, is part of Apollo Tyres.

"This intended decision comes after a thorough investigation and careful consideration and is driven by the continued increase in costs of ATNL due to macro-economic disruptions, steep increases in energy and labour costs, and a decline in demand for Spacemaster and Agri tyres," Apollo Tyres said in a statement.

These, together with pricing pressure from low-cost competitors, make the manufacturing at ATNL uncompetitive, it added.


Unfortunately, the high cost situation is expected to continue, therefore, long-term profitable production at Enschede is not in any way feasible, the Gurugram-based firm said.

"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 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," Benoit Rivallant, President at ATNL, stated.

The company takes its obligations toward employees and the Works Council very seriously, he said.

"We have engaged with them in line with these obligations and will continue to do so. We will also be in communication with customers, suppliers and other parties across the value chain and will continue to do business as usual," Rivallant said.

The execution of the intended decision is subject to completion of the Works Council consultation process and supervisory board approval, he added.

Shares of Apollo Tyres ended 2.18 per cent down at Rs 460.30 apiece on the BSE.