Michelin has announced the closure of three plants in Europe, one of which in Italy, which employs 400 people and produces semi-finished products. By the end of 2016, the French tire giant will close its Fossano site in Italy and its Oranienburg site in Germany. By mid-2018, however, it will be the turn of Ballymena, in the United Kingdom. Overall, nearly 1.500 employees are affected by these closures. “To finance these restructuring projects”, Michelin, according to a press release, “records a provision of approximately 280 million euros of losses in the consolidated financial statements as at 31 December 2015”.
The production of the Fossano site, specifies the note, “will be purchased from external suppliers or taken over by other plants of the Group in Europe. Michelin will also reorganize the logistics: the warehouses of Turin and Rome will be modernized and the Tribano warehouse, which employs 28 people, will be closed at the end of 2017. The reorganization of the activities in Italy will affect a total of 578 jobs by 2020. Michelin is committed to personally assisting each employee interested in finding a job alternative and support for a re-employment programme”.
The French group explains that “in Europe it employs over 65 people and has 40 production plants which represent 40% of the Group's business. But competition and the economic crisis of recent years have put a strain on the European tire market. To maintain its position as a leading manufacturer and continue to develop in Europe, the group has decided to consolidate its positioning on high value-added production".
In the part dedicated to Italy, Michelin specifies “that it is one of the major European bases of the group. Michelin Italia produces over 10% of European production and employs more than 4 people, 80% of whom work on production sites. To face the changing markets and maintain a solid foundation in Italy, the group has developed a five-year strategic plan. This will be supported by an investment of 180 million euros to significantly develop car, van and truck tire volumes in Italy by 2020 by strengthening the sites in Cuneo (more than 2 employees) and Alessandria (more than 800 employees).” .
