EMCC European Monitoring Centre on Change

Apollo Vredestein

Company/Organisation:
Apollo Vredestein

Geographic Location

Country: Netherlands
Region: Twente; Overijssel; Oost-Nederland
Location of affected unit(s): Enschede

Company

Sector: Manufacturing
Manufacture of rubber and plastics products, and other non-metallic mineral products
22.11 - Manufacture of rubber tyres and tubes; retreading and rebuilding of rubber tyres
Number Employed: 1200
Group: Apollo Tyres

Employment Effects

Announcement Date: 05-03-2020
Planned Job Reductions min: 528
Type of Restructuring: Offshoring/Delocalisation

Additional Information

The Dutch tyre maker Apollo Vredestein is to cut 750 of its 1,200 jobs in its plant in Enschede. The company's 120 contractors will also be made redundant. The company said that it was not profitable enough, particularly for certain types of tyres. As a result, the company wants to reduce its product portfolio in Enschede and restrict it to just the highest-value tyres such as agricultural and winter tyres while the production of other tires will be moved abroad.  The decision is due to falling car sales, and also to a sister company in Hungary where production of cheaper types of tyres has already started.

The unions stated that the company has invested less and less in the Enschede plant. The unions will meet with management next week to discuss a social plan for the employees. Apollo Vredestein stated that it regrets the dismissals and stated it wants to 'provide all necessary support and assistance to workers'.

The company is owned by Indian firm Apollo Tyres.

Update 5/6/20: After meeting with employee representatives, the company announced the number of cut jobs is reduced to 686. Employee representatives expressed their disappointment as their alternative restructuring plan was dismissed.

Update 10/7/20: The company has reached an agreement with the employee council, limiting the number of cut jobs to 528. As part of the agreement, the production of one particular type of tyre, which was planned to be offshored, will remain in Enschede.

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