Quick Overview
- Apollo Tyres to discontinue production at Enschede plant by summer 2026.
- Decision driven by high energy and labour costs, inflation, and low-cost competition.
- Company assures commitment to employees, customers, and partners during the transition.
In a major shake-up, Apollo Tyres NL BV has announced its intention to discontinue tyre production at its Enschede plant in The Netherlands by the summer of 2026. The decision, submitted for advice to the Work’s Council, follows a deep dive into the company’s operational challenges.
What is the cause?
Blame it on macro-economic disruptions, surging energy prices, and a stubbornly persistent inflation monster — Apollo’s Enschede operations found themselves squeezed from all sides. Add to that a shrinking demand for Spacemaster and agricultural tyres, and growing pressure from low-cost competitors, and you have the perfect recipe for unsustainable manufacturing.
Speaking about the tough call, Benoit Rivallant, President, Apollo Tyres NL, said, “We left no stone unturned to cut costs and improve efficiency. But unfortunately, inflation outpaced every saving we made. After a thorough investigation, discontinuing production was the only viable option.”
Apollo Tyres isn’t abandoning ship overnight though. The company has assured employees, customers, and partners that business will continue as usual during the transition. Employee support measures and consultations with the Work’s Council are already in motion, ensuring a structured and transparent exit process. Execution of the plan, however, hinges on the completion of consultation processes and supervisory board approvals.
For context, Apollo Tyres NL is a part of Apollo Tyres Ltd., one of India’s tyre manufacturing giants. With plants spread across India, Hungary, and the Netherlands, Apollo has established a stronghold in more than 100 countries, marketing its products under the Apollo and Vredestein brands.
The Bigger Picture
While the closure signals the end of an era for the Enschede facility, Apollo’s global ambitions stay firmly on track. The focus now will be on strategic manufacturing hubs that can better weather economic uncertainties while delivering competitive products across markets
Final Thoughts
Sometimes, even giants have to pivot when the winds blow too hard. For Apollo Tyres, closing the Enschede plant might feel like slamming the brakes, but it’s more like plotting a smarter route ahead. Tough call? Absolutely. But if there’s one thing we know — the road to success often has a few speed bumps.