GURGAON, India — Apollo Tyres Ltd. is scaling back production at its plant in the Netherlands, while taking steps to suspend all production at its Hungarian plant. These moves, which come in response to the impact of the cornavirus pandemic, are expected to last for at least two weeks.
The Indian tire maker will stop production of passenger tires at its plant in Enschede, Netherlands, on March 27. It said it will continue to produce specific "critical" agriculture tire sizes at that plant to respond to "a strong need across Europe," but would do this only "under strict measures and in line with the local health advisory."
The limited production is expected to last two weeks.
At its plant in Gyöngyöshalász, Hungary, Apollo will halt all production, beginning March 28. That plant will remain closed for at least two weeks.
During the coming weeks, the company will continue to evaluate market conditions as well as the health and safety of its employees, and it will detail its plans to reopen both "in due course."
This isn't the first action the tire maker has taken to help brace for the impact of the coronavirus. Last week, Apollo's leadership announced plans to take a reduction in pay due to the impact of the COVID-19 pandemic on the automotive industry.
Chairman and Managing Director Onkar S. Kanwar and Vice Chairman and Managing Director Neeraj Kanwar are taking a 25% reduction in their salary, while the company's senior management has taken a voluntary reduction in their salary by 15% in a show of solidarity.
Apollo recently announced it was refocusing operations in Enschede on high-performance passenger and agricultural tires. The plan 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.