The Michelin giant, which also has business in Romania, is preparing to close two tire factories in France. More than 1,200 employees would be laid off.
Tire maker Michelin plans to close two of its factories in France.
The decision would affect more than 1,200 workers.
The giant Michelin is closing two tire plants
The reasons cited by the French company, founded 135 years ago, for closing factories are high costs and cheap competition from Asia.
Because of this, the Michelin factories in Cholet and Vannes in western France are to be closed.
„We assessed our options but could find no alternative to closing these two sites (nn – Cholet and Vannes). The only constant at Michelin is that it is always on the move”, said the president of Michelin, Florent Menegaux, for the newspaper Le Monde, quoted by Economica.net.
Unions have already warned workers of possible plant closures in Cholet and Vannes. Cholet mainly produces tires for utility vehicles, and Vannes produces metal fibers (cord) for tires.
According to Reuters, staff at Michelin’s Cholet facility have already decided to go on strike to protest the planned closure. A similar decision could be made by the employees of the Vannes plant.
Michelin recently noted that, over the past 10 years, the market share of entry-level tires for cars, light transport vehicles and heavy trucks has increased. Thus, the premium categories were affected and the phenomenon of overcapacity appeared at some of the company’s factories.
The company has already halted production at both plants until November 11 to give management and unions time to negotiate.
Another three plants in Germany were closed in 2023
In November 2023, Michelin decided to close three production facilities in Germany.
At the time, the French company announced that it would stop work at its factories in Karlsruhe, Trier and Homburg until the end of 2025. The decision at that time affected more than 1,500 employees. Another plant in Bamberg, Germany was closed in 2019.
France, Germany and Italy are facing increasing announcements of plant closures or production cuts at others. These are considered some of the most expensive production areas in Europe.
Source: www.promotor.ro
