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Apollo Tyres submits request to close tire plant in the Netherland

Enschede, the Netherlands – The board of Apollo Tyres NL BV has submitted a Request for Advice to the Works Council regarding the intended decision to discontinue tire production and related activities at the plant in Enschede, The Netherlands, by the summer of 2026. All staff were informed accordingly in a town hall meeting.

This intended decision comes after thorough investigation and careful consideration, driven by the continued increase in costs for Apollo Tyres NL (ATNL) due to macroeconomic disruptions, steep increases in energy and labor costs, and a decline in demand for Spacemaster and Agri tires. These factors, combined with pricing pressure from low-cost competitors, make manufacturing at ATNL uncompetitive. Unfortunately, the high-cost situation is expected to continue, making long-term profitable production at Enschede unfeasible.

“Submitting the Request for Advice to the Works Council on the intended decision to discontinue production has been enormously difficult,” said Benoit Rivallant, President, ATNL. “In the last couple of years, we have implemented several initiatives to reduce costs at Enschede. These initiatives resulted in some savings, but most were completely negated due to ever-increasing inflation. After thorough investigation, we saw no other option than to recommend discontinuing production activities at Enschede as the Management Board of Apollo Tyres NL BV.”

“We take our obligations toward our employees and the Works Council very seriously. 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 the completion of the Works Council consultation process and supervisory board approval.”

Apollo Tyres NL BV is a Dutch manufacturer of pneumatic tires for cars and agricultural vehicles. The company is based in Enschede and is part of Apollo Tyres Ltd, headquartered in Gurugram, India, one of the leading tire manufacturers worldwide.