Apollo Tyres To Cut Over 500 Jobs At Netherlands Plant, To Focus on Specific Segment
Published On 15-Jul-2020 19:00:28
The company will continue to focus on high-value segment passenger car tyres and its earlier capacity for agricultural and Spacemaster tyres
Homegrown tyre maker, Apollo Tyres on Tuesday said the management and workers of its Netherlands-based plant have reached an agreement to convert the facility to cater to some specific segments, which would affect more than 500 jobs. The agreement between the two parties will lead to a reduction of 528 jobs at the Enschede-based manufacturing facility.
The job cut is part of an earlier announcement to cut 737 jobs over two years against the initial 1265 jobs to streamline manufacturing operations.
"The management and the Works Council (WC) of Apollo Vredestein BV (AVBV), the company's Netherlands-based subsidiary, have reached an agreement on the specialization of the factory in Enschede, marking the conclusion of consultation process," Apollo Tyres said in a regulatory filing.
Under the agreement, AVBV will retain 737 job positions against the initial 1,265 and continue to focus on high-value segment passenger car tyres and its earlier capacity for agricultural and Spacemaster tyres, it added.
Current market situation and the outbreak of COVID-19 has forced tyre maker to reduce its capital expenditure (CAPEX) by Rs 400 crore for this fiscal to maintain adequate liquidity. Apollo Tyres has also cut its capital investment across its European operations.