Research on socioeconomic impact Apollo Vredestein

Assignment

JBR was asked by the province of Overijssel and Oost.nl to study the socioeconomic impact of Apollo Vredestein for its suppliers, knowledge partners, the plastics and rubber cluster and other stakeholders within the Twente region and other parts of the Netherlands.

Background

Vredestein has its origins in Twente and a rich history as a tire manufacturer in the region with over 100 years of history. In addition to a tire factory, Apollo Vredestein has a global R&D Center based in Enschede where tires are developed and tested. The company has an important function in the Twente region and for the rubber and plastics cluster. In 2009 Vredestein Banden B.V. was acquired by Apollo Tyres Ltd. of India. In the summer of 2020 a major reorganization was announced which, according to the parent company, was necessary due to the loss-making production of the vast majority of the tires produced in Enschede.

Problem Statement

The potential loss of a significant part of tire production in Enschede could have a negative impact on suppliers, knowledge partners, the competitiveness of the region and of the rubber and plastics cluster in the Netherlands. Given the high stakes, this case was on the agenda of local, regional and national governments. In order to make well-founded policy choices, there was a need for insights on socioeconomic impact for a broad framework of stakeholders.

Our contribution

JBR mapped the ecosystem in which Vredestein operates and the value chain with suppliers and knowledge partners. In addition, the socioeconomic impact of Vredestein was determined for the primary and secondary suppliers and knowledge partners. Finally, using the elements of Porter's Diamond Model (see Figure 1 below), Vredestein's impact on the competitiveness of the rubber and plastics cluster was determined. JBR obtained these insights through a combination of desk research and conducting interviews with stakeholders.

The result

The report's findings were discussed with the client, the Ministry of Economic Affairs and the federation NRK, and were used as part of making policy choices in this case study.