Apollo Tyres on Thursday said it will cut 750 jobs at its plant in the Netherlands over a period of two years in order to have a "sustainable business" and focus on producing only high-value tyres.
The home-grown tyre major had acquired Vredestein Banden BV (VBBV) for an undisclosed sum in 2009 from Russia's bankrupt largest tyre manufacturer Amtel-Vredestein NV.
Apollo Vredestein BV (AVBV) had a meeting with its employees to discuss the future of the plant in Enschede and the company's plans to build a more sustainable business in the Netherlands, Apollo Tyres said in a statement.
AVBV intends to specialise the production in Enschede to a level where only high-performance Vredestein tyres will be produced at a profitable level, it added.
"Aligning the plant to the intended specialised and sustainable production level, will unfortunately result in AVBV having to reduce its workforce in the Netherlands by around 750 full-time employees, over a period of 24 months," Apollo Tyres said.
Explaining the rationale behind the step, the company said: "Within the current operating environment certain tyre sizes can no longer continue being produced in Enschede at a sustainable and competitive level. The company therefore intends to specialise the plant towards high-value tyres and to secure a sustainable future in the Netherlands."