French tyre manufacturing giant Michelin will close its truck tyre factory at La Roche-sur-Yon, in western France, as it faces competition from Asian manufacturers in a poorly auto industry. The closing of the factory will affect some 619 employees, and a further 74 people who work in nearby Maine-et-Loiret, manufacturing rubber for the site in La Roche-sur-Yon, would also be affected.
However, Michelin has promised a “support plan” for affected employees, and would offer them a chance to remain in the company in France.In addition, Michelin is looking at “a major public-private project” to relaunch the failing Roche-sur-Yon site, which a US$77 million investment was unable to accomplish.
Florent Menegaux, Michelin’s CEO, claims “increased competition” and a “difficult market for high-end/heavy-duty tyres” are to blame for their current predicament.
Michelin employed about 110,000 people worldwide, including 20,000 in France, as of end-2018, but has recently announced the closure of a German factory with 858 employees by 2021.