French tire manufacturing giant Compagnie Generale des Etablissements Michelin has announced its intention to close two factories in France by early 2026.
Report informs via Russian media that the plants, located in the cities of Cholet and Vannes, have been facing severe economic difficulties for several years despite the company's efforts to maintain their viability.
According to Michelin's press release, the factories have been significantly affected by the structural transformation of the passenger car and truck tire markets and the deterioration of competitiveness in Europe, particularly due to inflation and rising energy costs. The decision to close the plants was taken as a last resort after analyzing and evaluating all alternative options and scenarios.
In recent years, the European market has seen a trend towards increased consumer interest in cheaper tires, mainly from Asia, which has dealt a blow to the premium segment of European manufacturers. This situation has led to a structural surplus of production capacity at some Michelin plants.
The two factories employ over 1,250 people. Production at the plants has been suspended until November 11 to allow for negotiations between management and unions, aiming to offer each employee individual support conditions.