Vredestein plant in the Netherlands reduces production

Against the backdrop of rising costs and declining demand, Apollo Tyres will reduce production volumes at its plant in Enschede (Netherlands). About 60 temporary contracts with employees will not be extended, and the company's work schedule will be revised, reports Pneus News.

It is noted that employees have already been informed about the new measures, and the company's works council has approved the management's decision, as excess capacity has emerged due to weakening demand.

"We are taking measures to reduce excess capacity and adapt production to current demand, so we will not extend temporary contracts that are expiring," said Ton Koppus, Communications Manager at Vredestein in Europe. "For permanent employees, nothing will change. After all plans are implemented, the total number of employees will exceed 500 people."

According to him, "reorganization is absolutely necessary". "The production of Spacemaster [spare] tires was most affected, as there has been a significant decline in demand over the past five years, related to the current situation in the European automotive industry," Koppus said. "Plans have already been discussed with the works council, which responded positively. Structural changes are now being implemented. Over the past four to five years, our plant in Enschede has seen double-digit growth in costs, mainly due to increased labor and energy costs. For this reason, it is very important to take measures and monitor market trends."

Photo: NRZ / Arno Borchers