Apollo Tyres To Cut 750 Jobs At Netherlands Plant
Published On 01-Jul-2020
The strategic aim is to specialise the Enschede plant to an extent where AVBV will only produce agricultural tyres and high value niche segment passenger car tyres
Apollo Tyres on Thursday said it will cut 750 jobs at its plant in Netherlands over a period of two year as it aims to align the plant to the intended specialised and sustainable production level. The home-grown tyre major had acquired Verdestein Banden BV (VBBV) for an undisclosed sun in 2009 from Russia’s bankrupt largest tyre manufacturer Vredestein Banden NV.
Apollo Vredestein designs, manufacture and sells over seven million tyres each year for passenger cars, two-wheelers and commercial vans, as well as agriculture and industrial tyres trough its locations in Europe and the USA.
According to the company, within the current operating environment certain tyre size can no longer continue being produced in Enschede, Netherlands. Therefore, it intends to manufacture high-value tyres to secure a sustainable future.
"Aligning the plant to the intended specialised and sustainable production level, will unfortunately result in AVBV having to reduce its workforce in the Netherlands by around 750 full-time employees, over a period of 24 months," Apollo Tyres said.
Explaining the rationale behind the step, the company said: "Within the current operating environment certain tyre sizes can no longer continue being produced in Enschede at a sustainable and competitive level. The company therefore intends to specialise the plant towards high-value tyres and to secure a sustainable future in the Netherlands."
"The operating environment for AVBV and the entire tyre industry has changed significantly over the last few years," Apollo Vredestein President Benoit Rivallant said.
The strategic aim is to specialise the Enschede plant to an extent where AVBV will only produce agricultural tyres and high value niche segment passenger car tyres with a short production run, the tyre maker said.
