Apollo Tyres Confirms Enschede Plant Shutdown Plan by Summer 2026

Apollo Tyres NL BV has announced plans to shut down its manufacturing plant in Enschede, Netherlands, by summer 2026, citing unsustainable operating costs and declining demand for its specialised tyre lines. The closure, still subject to consultation, signals broader pressures facing European tyre manufacturing.

Rising Costs and Weak Demand Drive Exit

Apollo Tyres cited multiple economic pressures behind the decision:

• High energy and labour costs in the Netherlands
• Persistent inflation that has erased prior cost-saving gains
• Falling market demand for niche products like Spacemaster and agricultural tyres
• Competitive pricing pressure from lower-cost global producers

According to Apollo Tyres NL President Benoit Rivallant, cost-reduction initiatives have been undermined by sustained inflation, making continued operations at Enschede economically unviable.

Consultation Process Underway

The company has submitted a Request for Advice to its Works Council, initiating the required consultation period. Approval from the supervisory board is still pending.

Until the process concludes, Apollo Tyres NL has stated that production and business operations will continue without interruption. Stakeholder communication is ongoing.

Impact on Tyre Manufacturing in Europe

The Enschede facility has experienced previous workforce reductions and attempted to pivot to high-value production segments. The planned closure reflects wider trends in European manufacturing, particularly for energy-intensive industries under strain from:

• Increased global competition
• Long-term structural cost challenges
• Shifting demand dynamics in traditional and agricultural tyre markets

Apollo Tyres operates other manufacturing and R&D sites in Hungary and India.

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This closure underscores the growing divide between low-cost global production hubs and European manufacturing sites, particularly for niche and specialty tyres. As the tyre industry pushes toward automation, smart manufacturing, and EV-specific product lines, legacy plants without these capabilities face growing viability challenges, especially when inflation and energy costs outpace product demand.

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Tagged with: Apollo Tyres, Enschede plant closure, tyre manufacturing Europe, Spacemaster tyres, agricultural tyres, tyre production costs, inflation impact, Works Council consultation, specialty tyre market

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