The Vredestein plant in the Netherlands will be closed
Apollo Tyres has submitted a request for consultations to the Works Council of the Vredestein plant in Enschede, Netherlands, due to plans to close the factory by summer 2026. The plant was opened in 1952 in cooperation with B.F.Goodrich, and the Indian company acquired it along with all the manufacturer's assets in 2009.
In Apollo, it is noted that the decision is due to the ongoing growth of expenses, which is associated with "macroeconomic disruptions, a sharp increase in energy and labor costs, as well as a decrease in demand for Spacemaster tires [for spare wheels] and products for the agricultural sector".
"In combination with price pressure from competitors with low production costs, all this has made production in the Netherlands uncompetitive," Apollo said. "Unfortunately, it is expected that the high level of costs will continue, so ensuring the profitability of production in Enschede in the long term is not possible".
According to Benoit Rivallant, President of Apollo Tyres NL, the decision to close the plant was "extremely difficult". "Over the past couple of years, we have implemented several cost-cutting initiatives in Enschede," he noted. "They led to some savings, but most of the results were offset by growing inflation. After careful consideration of the situation, we did not see any other way out than to recommend stopping production in Enschede".
Rivallant added that "we are very serious about our obligations to our employees and the Works Council". "We are interacting with them and will continue to do so," he emphasized. "We will also maintain contact with customers, suppliers, and other participants in the production and sales chain and work in the usual mode. Our relationships will not change, and we will continue to focus on providing the most efficient customer service".
As a result of Apollo's decision, about 500 people will lose their jobs, and the Federation of Dutch Trade Unions (FNV) noted that it was a "black day" for the enterprise, and some employees' fathers and grandfathers worked at the plant. According to Nicole Engmann, director of the Dutch Christian National Federation of Trade Unions (CNV), "in recent years, Vredestein workers have done everything possible to prevent a catastrophe. Unfortunately, it turns out that it was not enough".
The CNV also notes that the closure of the plant is "another example of the exodus of industry from the Netherlands". "High energy costs and inflation have once again led to the fact that production will be relocated to another country," the organization said. "Again, a large number of jobs are disappearing in our country, and the government must take measures to level the competitiveness of the Netherlands".
The closure did not come as a complete surprise to the workers: five years ago, Apollo had already carried out mass layoffs at the Vredestein plant, and then 750 people lost their jobs. As the media notes, production was relocated to a plant in Hungary, which was opened in 2017.
Enschede Mayor Roelof Bleker stated that the Vredestein plant is an "old energy-intensive production". "I think all options were considered to preserve production, but in the end, they came to this decision," he said, adding that the news was "dramatic" for employees. The official also expressed hope that all those affected by the plant's closure would be able to find work next year, as "companies in the region are growing rapidly and looking for people".
According to Autoblog.nl, during the previous mass layoffs, Apollo guaranteed the preservation of jobs for five years, and this period has just expired, and the plant mainly produces tires for tractors and "doughnuts". A research center of Apollo is located near the enterprise, and the head office of the Dutch branch of the company is located in Amsterdam, and it is not yet known whether they will continue to work.
Photo: RTL Z / Hans de Bruijn