Michelin to shut German ops; loss of 1,500 jobs

MichelinThe rising costs of operations in Germany are impacting tyre makers. The latest is French tyre maker Michelin that has said that it will gradually cease the production at its Karlsruhe and Trier sites, as well as the new tyre and semi-finished products manufacturing of Homburg. Michelin adds it will also transfer the Customer Contact Centre from Karlsruhe to Poland. A total of 1,532 employees are impacted by these operations, which are meant to be completed by the end of 2025.

This decision is linked to the growing competition of budget truck tyres, and the lack of competitiveness of its German operations for its European and export markets, said the firm.

Michelin adds it will record a provision of approximately EUR425 million in its consolidated financial results for the year 2023.

Michelin’s plant in Karlsruhe is the company’s oldest site in Germany, founded in 1931. Its current production capacity is 1.1 million light truck tyres.

The soaring prices of natural gas and electricity, which are essential for tire production, have pushed the production costs higher and made it increasingly difficult for the company to make profits in the country.

Earlier, US tyre maker Goodyear had said that it will also cease production at two of its manufacturing facilities in Germany, cutting around 1,750 jobs.