ENSCHEDE, Netherlands—Seeking to ensure the future of its tire manufacturing operations in Enschede, Apollo Vredestein B.V. is planning to refocus the 73-year-old plant on high-performance passenger and agricultural tires.
The plan, disclosed March 5 in a meeting with employees at the factory, calls for the phaseout of certain product lines, which will result in the elimination of 750 jobs over the coming 24 months, Apollo Vredestein said.
"The operating environment for Apollo Vredestein—and the entire tire industry—has changed significantly over the last few years," said Benoit Rivallant, president of Apollo Vredestein in Europe. "Despite large investments made in recent years 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 adaption of the site to secure it has a sustainable future in the long run."
At last report, Apollo Tyres Ltd. listed 1,333 production-related employees at the plant, which it acquired in 2009 from Vredestein Banden B.V.