Apollo Tyres Ltd, headquartered in Gurugram, has announced its intention to halt production at its Enschede manufacturing plant in the Netherlands by mid-2026. This strategic move comes in response to ongoing cost challenges and evolving market dynamics that have impacted the company’s European operations.
The company cited sustained increases in energy and labour costs, coupled with weakening demand for specific product categories—such as Spacemaster and agricultural tyres—as key reasons for the decision. Additionally, intensified price competition from lower-cost manufacturers has made continued operations at Apollo Tyres Netherlands BV (ATNL) financially unsustainable.
In an official communication, the company noted that the elevated cost environment is unlikely to improve in the foreseeable future, ruling out the possibility of restoring long-term viability at the site.
The Enschede facility, a subsidiary of Apollo Tyres Ltd., is engaged in the production of tyres for both passenger and agricultural vehicles. As of March 31, 2024, the Dutch operation generated ₹1,463.6 crore in revenue—around 5.8% of the company’s total consolidated revenue. The unit’s net worth stood at ₹1,166.7 crore, contributing 8.4% to the group’s overall net worth.
Benoit Rivallant, President of ATNL, acknowledged the gravity of the decision. “Submitting our proposal to the Works Council has been an incredibly difficult step,” he said. “Despite various cost-saving initiatives over recent years, ongoing inflation and structural pressures left us with limited options. Following a detailed assessment, discontinuing production emerged as the only viable path forward.”
Employees were informed of the proposed closure during a town hall meeting, and Apollo Tyres has reiterated its commitment to supporting its workforce through the transition. The company also plans to maintain transparent communication with all key stakeholders, including customers, suppliers, and regulatory bodies, to ensure minimal disruption to business continuity. The proposal remains subject to consultation with the Works Council and final approval from the company’s supervisory board.
Apollo Tyres is recognized for its advanced technology in tire design and manufacturing, which contributes to improved safety and fuel efficiency. The company’s focus on research and development, along with strategic global partnerships, supports its ongoing efforts to deliver reliable and cutting-edge tire solutions to customers around the world.
