Apollo Tyres to reduce over 500 jobs at Netherlands plant, focus on specific segments

Apollo Tyres on Tuesday said the management and workers of its Netherlands-based plant have reached an agreement to convert the facility to cater to some specific segments, which would affect more than 500 jobs.

The agreement between the two parties paves the way for the reduction of 528 jobs at the Enschede-based manufacturing facility.

"The management and the Works Council (WC) of Apollo Vredestein BV (AVBV), the company's Netherlands-based subsidiary, have reached an agreement on the specialization of the factory in Enschede, marking the conclusion of consultation process," Apollo Tyres said in a regulatory filing.

Under the agreement, AVBV will retain 737 job positions against the initial 1,265 and continue to focus on high value segment passenger car tyres and its earlier capacity for agricultural and Spacemaster tyres, it added.

Earlier, in March the company had said it will cut 750 jobs at the plant over a period of two years in order to have a 'sustainable business' and focus on producing only high-value tyres.

The home-grown tyre major had acquired Vredestein Banden BV (VBBV) for an undisclosed sum in 2009 from the Russia's bankrupt largest tyre manufacturer Amtel-Vredestein NV.