Due to a decline in Earthmover tyres in its market segments and OE Infrastructure, Michelin suspended construction in its Chennai (India) site with a Civil Engineering workshop for tyres up to 49 inches, while maintaining that of a Truck workshop. This started in 2013 and the ramp-up is proceeding as expected.
A number of joint investments have been made and most of them are now used for the workshop Truck.
The situation in global markets OE Civil Engineering and Infrastructure, accentuated still down compared to 2011, does not allow to resume production prospects envisaged initially. In this context, Michelin Group temporarily waives its planned production capacity Earthmover tyres on the Chennai site.
As a result, Michelin will record in its 2015 accounts one-time charge of approximately EUR75 million (impairment loss) equal to the loss in value of investments made ??to the Civil Engineering Project Chennai and industrialization costs capitalized.