Apollo Tyres’ shares dropped over 2% in the morning trade on April 25, following the company’s announcement to discontinue tyre production at its Netherlands-based facility. As of 9:52 AM, the shares were trading 1.51% lower at Rs 454.45.
The decision comes as part of the company’s effort to address escalating production costs. The Netherlands subsidiary, ATNL, operates a plant in Enschede, and it has submitted a report to the ATNL Works Council to advise on discontinuing operations by the summer of 2026.
This move is in response to increasing manufacturing expenses that have made continued production in the region unsustainable. However, the decision is still pending approval from the ATNL Works Council, which represents the employees under the Dutch Works Councils Act. The council will provide its advice after the consultation period, which is a crucial legal requirement in the Netherlands. The ATNL Supervisory Board will also need to give its approval before the plan is finalized.
The discontinuation of operations at the Enschede plant will significantly impact the company’s European production capacity. This decision marks a strategic shift for Apollo Tyres as it navigates rising operational challenges in its global supply chain.
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