Alejandro Recasens has joined Apollo Vredestein as Cluster Director South-West, responsible for Spain, France, Italy and Portugal. Having had a successful career with Pirelli Tyres spanning two decades, Recasens is now spearheading Apollo Vredestein’s plans for growth in the markets of southwestern Europe.
Lay-off talks between Vredestein and employees at its Enschede factory in The Netherlands have not resulted in an agreement. The talks were prompted by the management’s announcement in early March that the firm is moving much of its production to Hungary. Since this will result in laying off around 750 of the 1,200 employees, a works council was developed in order to formulate an alternative proposal. However, according to various local news reports, the proposal was not received positively by the company management.
Warburg Pincus is now a shareholder in Apollo Tyres Ltd. During a meeting yesterday, the tyre maker’s Committee of Directors – Private Placement allocated Emerald Sage Investment Ltd., an affiliate of the private equity firm, 54,000,000 compulsorily convertible preference shares. Emerald Sage paid a total of Rs s. 5,400,000,000 (£57.56 million) for the shares in this first tranche transaction, or Rs 100 each.
Following a slight easing of the lockdown regulations in India, Apollo Tyres reports it “partially resumed” tyre production yesterday at its Perambra plant in Kerala state. Apollo’s other plants in India remain closed for the time being.
At a meeting held on Friday, Apollo Tyres Ltd.’s Board of Directors approved the issue of Rs 10 billion (£105 million) worth of non-convertible debentures (NCBs) via a private placement. The NCBs will be issued in one or more tranches according to the limits approved by shareholders at the tyre maker’s Annual General Meeting on 31 July 2019.
The Competition Commission of India (CCI) has approved Warburg Pincus’ indirect acquisition of a 9.93 per cent stake in Apollo Tyres Limited. The purchase of 108,000,000 compulsorily convertible preference shares in the tyre maker, each share worth Rs 100, is being carried out by Emerald Sage Investment Limited. This transaction is worth approximately Rs 10.8 billion (£114 million).
Several states across India have announced lockdowns in order to better deal with the COVID-19 outbreak, and as a result Apollo Tyres Ltd. has halted operations at its plants in Kalamassery & Perambra (Kerala), Limda (Gujarat) and Chennai (Tamil Nadu) until 31 March. In addition, employees in the company’s offices have been instructed to work from home.
Apollo Vredestein is scaling back production at its European plants in Hungary and the Netherlands in addition to “taking measures to protect our workforce in line with government health advisory and measures” against coronavirus/Covid-19.
Some 750 jobs will be lost due to restructuring at the Apollo Vredestein tyre plant in Enschede, the Netherlands over the next couple of years, and Dutch politicians want to know if the European Union has contributed in any way to the chain of events that will lead to some of Enschede’s tyre production relocating to Hungary. MEPs from Dutch political party the CDA (Christian Democratic Appeal) have asked the European Commission to clarify certain points.
A meeting between the management of Apollo Vredestein BV (AVBV) and employees took place today to discuss the future of the company’s tyre factory in Enschede, the Netherlands. The workforce was told that Apollo Tyres intends to “specialise” production at the site in order to ensure profitability. Measures related to this realignment include reducing AVBV’s personnel by approximately 750 full-time employees over a period of 24 months.
Private equity firm Warburg Pincus is investing around £117 million in Apollo Tyres via a subsidiary. On 26 February, the tyre maker’s Board of Directors approved the issue of up to 108 million compulsorily convertible preference shares, each with a face value of Rs 100, to Emerald Sage Investment Ltd. The transaction is subject to shareholder and regulatory approvals.
Some 21 per cent of the world’s population live in countries belonging to the South Asian Association for Regional Cooperation (SAARC). Nepal is one of these eight countries, and this is the market where Apollo Tyres generates more than 35 per cent of its SAARC region export revenues. To better service customers there, the company has now set up an office in the capital, Kathmandu.
Apollo Vredestein
Apollo