Vredestein plant in the Netherlands closed

On June 30, the Vredestein tire plant in Enschede, Netherlands, was officially closed after 78 years of operation, reported the Indian company Apollo Tyres, which has been the owner of the facility since 2009. About 500 people lost their jobs.

Apollo's Financial Director, Gaurav Kumar, called the decision to close the plant "tough and emotional", and the key argument in its favor was, in his words, the results of the plant's operation, which "have been disappointing for two years in a row".

"The tire market in Europe has been stagnant or even declining for two years," he said, adding that the profitability of European production is now more than 14% lower than before. "We have to operate in conditions of high energy prices and significant wage growth, which is now much higher than it was characteristic of Western Europe in the past," he added.

P_production of passenger tires has been relocated from the Netherlands to Apollo's plants in Hungary and India, and Kumar said that the company will now be able to return to its previous profitability levels. According to Apollo's estimates, the closure of the plant will cost the company approximately €98 million, and it is expected that this amount will be compensated within several years.

In Enschede, tires for agricultural and special equipment were also produced, and this production was not relocated. According to Kumar, "it was a conscious choice, since the production was small and unprofitable anyway".