Apollo Tyres to Halt Dutch Production in 2026 Amid Rising Costs

Apollo Tyres plans to cease tyre manufacturing at its Enschede plant in the Netherlands by summer 2026, citing rising costs and declining demand. This decision follows a thorough investigation into the plant's uncompetitiveness due to increased energy and labor costs and pressure from low-cost competitors.

Apollo Tyres announced on Friday its decision to halt production at its Enschede plant in the Netherlands by 2026. Rising costs and declining demand have forced the company's hand, according to officials. The firm cited macroeconomic disruptions and increased energy and labor costs as key factors.

The board has submitted a formal Request for Advice to the Works Council regarding the closure. Benoit Rivallant, President of Apollo Tyres NL BV, stated that despite initiatives to cut costs, inflation has outweighed any savings, necessitating the end of production.

The decision's execution will depend on the outcome of consultations with the Works Council and further supervisory board approvals. Stakeholders, including employees and customers, have been informed, and efforts to engage them continue as the company upholds its obligations.

(With inputs from agencies.)