Shares of Apollo Tyres tumbled 2% during the early trading hours on 21 September after the news of tyre production being suspended at the Limda, Gujarat manufacturing unit following a labour disagreement.

The company said in its exchange filing that the manufacturing of bias and OTR tyres at its Limda, Gujarat, has been suspended after some concerns were raised among shop floor employees on renewing the long-term settlement agreement.

The company is negotiating with the labour union leaders to address the issue and reach a mutually agreeable settlement.

The company added that there is no material impact on the operations at the current stage.

The company is committed to promoting the interests of its employees, stakeholders, and the organisation’s long-term stability, and plans are in place to minimise the disruption in the supply chain as they are actively monitoring the situation.

At 11:22 am, the shares of Apollo Tyres were trading at Rs 370.50 or 2.27% below its previous close on NSE.