Michelin: to stop production at two plants
(CercleFinance.com) - Michelin today informed the 1,254 employees of its Cholet and Vannes plants its intention to cease production, by early 2026.
Both these plants have been facing major economic difficulties for several years.
These two sites have been heavily impacted by the structural transformation of the Passenger Car and Light Truck tyre markets and the deterioration of Europe's competitiveness, notably due to inflation and rising energy prices, management says.
In recent years, the European Passenger Car & Light Truck and Truck tire markets have undergone a profound transformation towards low-cost tires, mainly from Asia, to the detriment of premium segments, the group says.
The group undertakes to mobilise all the resources at its disposal to provide individual support to the 1,254 employees concerned.
Michelin will record a provision of around E330m in non-recurring expenses in its consolidated financial statements at 31 December 2024.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
Both these plants have been facing major economic difficulties for several years.
These two sites have been heavily impacted by the structural transformation of the Passenger Car and Light Truck tyre markets and the deterioration of Europe's competitiveness, notably due to inflation and rising energy prices, management says.
In recent years, the European Passenger Car & Light Truck and Truck tire markets have undergone a profound transformation towards low-cost tires, mainly from Asia, to the detriment of premium segments, the group says.
The group undertakes to mobilise all the resources at its disposal to provide individual support to the 1,254 employees concerned.
Michelin will record a provision of around E330m in non-recurring expenses in its consolidated financial statements at 31 December 2024.
Copyright (c) 2024 CercleFinance.com. All rights reserved.