To build a more sustainable business, Apollo Vredestein has plans to limit production at its plant in Enschede, the Netherlands, to focus on high-performance tires only. Within the current operating environment certain tire sizes can no longer continue being manufactured in Enschede at a profitable and competitive level. The aim is to specialize the factory in production of agricultural tires and high-value products with a short production run.
This will result in Apollo Vredestein having to reduce its workforce in the Netherlands by approximately 750 full-time employees over a period of 24 months. The facility’s future will be discussed at a scheduled meeting with staff.
“The operating environment for Apollo Vredestein and the entire tire industry has changed significantly over the past few years. Despite large investments in modernizing the plant, the factory employees’ dedication and continuous efforts to make the site economically viable have proved ineffective against the accelerated market transformation and has required a strategic adaptation of the site to secure it has a sustainable future in the long run,” commented Benoit Rivallant, president of Apollo Vredestein in Europe.
“After a deep analysis of the profitability and sustainability of the products currently produced in the Enschede plant, we regretfully could not arrive at a different conclusion. We are aware that employees and their families will face a great deal of uncertainty as a result of this difficult decision. They have been a committed and dedicated workforce throughout the years and that has strongly influenced our attempt to secure a sustainable future.”
“As a responsible employer we will comply with all statutory obligations toward our employees. We will regularly inform our employees about developments within this process and offer them all necessary support and assistance.”