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August 04, 2000 02:00 AM

Michelin closes Mexico tire plants

Crain News Service
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    MEXICO CITY, Mexico (Aug. 4, 2000) — Group Michelin´s Uniroyal S.A. de C.V. subsidiary has closed its tire plants in Tacuba and Queretaro, Mexico, due to cost competitive reasons. Michelin described the plants as its least cost-competitive source of Uniroyal tires in North America despite repeated cost-cutting and productivity improvement programs over the past 10 years.

    The closings take capacity for more than 9,000 tires a day out of circulation. The 23-year-old Queretaro factory operated at 6,000 passenger and truck radials daily, while the 54-year-old Tacuba plant listed daily capacity of 3,200 bias auto, truck and bus tires. The plants produced primarily Uniroyal and private brand tires for the Mexican market; no Michelin-brand tires were made there.

    The 760 employees put out of their jobs by the closings will receive a severance package that meets all legal and contractual requirements, the company said.

    Uniroyal said its commercial business with the Uniroyal brand in Mexico was profitable and will continue to supply the Mexican with Uniroyal-brand tires from other sources. Michelin acquired the plants in 1989 through its purchase of Uniroyal Goodrich Tire Co.

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