Dutch tyre brand Vredestein, part of the Apollo Tyres family since 2009, is a name well-known amongst European motorists. This isn’t the case in the USA and Canada, where Vredestein’s only enjoyed a niche following in past years. Apollo Tyres now intends to change this – in September it launched a “comprehensive brand offensive” there backed by a full range of new tyre lines explicitly designed for and developed in North America.
Apollo Tyres is aiming for leadership in the premium two-wheeler segment in India with the inauguration of a dedicated two-wheel cross-ply and tyre manufacturing operation. India is the largest two-wheeler market in the world, and still has a headroom for further growth. In light of the Covid-19 pandemic, demand has increased as people move away from shared/public transport and gradually moving to own a personal vehicle. However, while India is at the forefront for Apollo’s venture into the two-wheel segment, the company is also hinting that it plans to export two-wheel tyres to Europe and North America.
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.
Production at Apollo Tyres’ factory in Hungary will partially recommence tomorrow, a month after the tyre maker scaled back production there and in its Enschede plant in the Netherlands in response to the COVID-19 crisis.
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.
Top management at Apollo Tyres have announced they’ve accepted a pay cut during the market difficulties brought about by the COVID-19 pandemic. The tyre maker says it is also preparing to implement further measures.
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.