Tire plant in Enschede to close after over 100 years of operation

Apollo Tyres announced Friday that it will close the historic Vredestein factory in Enschede in the summer of 2026, citing high energy costs and inflation. About 500 workers will lose their jobs at the more than century-old plant, according to NOS.

The Indian parent company informed employees during a staff meeting Friday afternoon, confirming fears that had been reportedly growing among the workforce. The closure marks another chapter in what unions describe as the ongoing erosion of industrial production in the Netherlands.

“This is a black day,” FNV union representative Monique Daamen said to NOS. “It is deeply sad for workers who have often worked there for generations.” Daamen blamed the closure partly on what she called “failing industrial policy in the Netherlands.”

CNV union official Nicole Engmann said employees at Vredestein had done everything in their power in recent years to prevent a worst-case scenario. “Unfortunately, it turns out that was not enough,” Engmann said to NOS. She called the closure “yet another example of industrial decline in the Netherlands,” adding, “Once again, high energy costs and inflation have played a role in the decision to relocate production to another country. And once again, a significant amount of employment disappears from our country. As far as we are concerned, there is a role for the government to level the Dutch competitive position.”

The company’s decision follows years of warning signs. In 2019, Vredestein underwent mass layoffs, cutting 750 jobs. According to its most recent annual report, Apollo Tyres had already transferred sales operations and other assets from Apollo Tyres Vredestein to its European division in Hungary about a year and a half ago. That Hungarian division opened in 2017.

Workers were first alerted Thursday to attend a meeting Friday afternoon. Many feared the worst after learning that Apollo Tyres CEO Benoit Rivallant would be present. Trade unions were not allowed to attend the in-person meeting, but were informed beforehand through a digital briefing.

Municipal leaders expressed dismay at the loss of one of the city’s historic employers. “It is really an unpleasant surprise,” said Enschede Mayor Roelof Bleker. However, Bleker acknowledged that the news was not entirely unexpected. “It is an old, energy-intensive production location,” he said to NOS of the factory. “I think all possibilities have been investigated to keep the location open, but this is the outcome.”

Bleker described the situation as “dramatic” for the employees. “Many workers live nearby. A special neighborhood was once built for them,” he said. Despite the blow, the mayor expressed hope that all affected workers would find new employment within the next year. “The Twente region is strong. Companies are growing and looking for people,” he said.