Apollo has agreed on off-take supplies of premium agricultural tyres

After closing the Vredestein plant in Enschede (the Netherlands), premium agricultural tires for Apollo Tyres will be produced by an outsourcing partner. This was reported by Apollo's CFO Gaurav Kumar, who added that the company is still finalizing its medium-term strategy regarding the products previously manufactured in the Netherlands, while building a new plant in India has been deemed economically unfeasible.

According to him, “the only OHT tire production capacity is located in Kalaserry, now part of Kochi city, and opportunities for its expansion are limited,” while launching a new plant “also involves challenges,” since up to 20 tons of agricultural tires were produced daily in Enschede. “Starting production with a capacity of 10 tons at a new location makes no sense,” Kumar noted.

For this reason, Apollo has found an outsourcing partner, with whom it plans to cooperate in the medium term. When asked about the region where tires will be manufactured, Kumar replied “at the crossroads of Asia and Europe.”

Apollo halted production at the Dutch plant in early June 2026, with its final closure scheduled for September. The facility primarily produced passenger car tires, agricultural machinery tires, and the specialized Spacemaster spare wheel tire line.

As Kumar explained, Spacemaster tire production has already been transferred to a plant in India and these tires have been homologated for supply to automakers.

Apollo links the closure of the Enschede plant to high energy and labor costs, weakening demand, and growing competition from manufacturers offering low-priced products. The impact of the plant closure is expected to affect Apollo's results starting from the second half of the current financial year.