Apollo Tyres to stop production at Netherlands unit as costs mount

Apollo Tyres will be discontinuing its tyre production at its Netherlands facility by the summer of 2026 due to high production costs.

The company's Netherlands-based subsidiary, ATNL, which has a plant in Enschede, on Friday, April 25, submitted a report for advice to the ATNL Works Council, to discontinue the tyre production and related operations at the plant by the summer of 2026.

The decision is subject to ATNL Works Council's prior advice and approval of ATNL Supervisory Board. The council is a representative body in the Netherlands constituted under the Dutch Works Councils Act and comprises elected employees of ATNL.

The submission of the request for advice marks the start of the consultation period, the company said. The process of consultation and advice is an integral part of the local legal requirements in Netherlands, it added.

In the financial year 2024, ATNL's revenue and PBT stood at ₹1,460 crore and ₹1,500 crore, respectively, which is 6% of the consolidated revenue and PBT. ATNL's networth was 1,170 crore, which is 8% of the consolidated networth.

Apollo Tyres shares ended the previous session 2.01% lower at ₹461 apiece. The stock has declined 12.6% this year, so far.

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