Michelin closing C3M plant in Sweden
GOTHENBERG, Sweden-Group Michelin plans to close its C3M-based tire making operation at Kungaiv, Sweden, with the loss of up to 120 jobs.
The company employs some 200 at the site near Gothenberg, which also serves as a logistics center for Michelin in Scandinavia. Talks have begun with workforce representatives aimed at transferring some laid-off workers to logistics operations, the company said.
The plant, operated by Michelin Gummiringar A.B., opened in 1997 and is Michelin's sole manufacturing operation in Scandinavia, producing winter radial passenger tires. The company did not specify why it intends to close to the plant.
Conti to take control of Moscow Tire
HANOVER, Germany-Continental A.G. has agreed to gradually take majority control of Moscow Tire Plant, a deal that will allow the Russian facility to expand and upgrade.
The German tire company will spend $43 million over a three-year period to modernize production at the facility, with $15 million invested this year after a formal contract is signed.
Initially, the plant will increase production of Taganka-brand tires to 5 million units annually from 2 million units, and eventually make Continental, Barum and Gislaved passenger and light truck tires, Conti said.
Goodyear, Russian tire maker in talks
BIRMINGHAM, England-Goodyear is talking with Russia's Yaroslavl Tyre about a tire manufacturing off-take agreement, according to representatives of both companies.
``The process is in progress,'' said a spokesman for Yaroslavl Tyre, speaking at the recent InterTyre convention/trade show in Birmingham. ``We are waiting for molds from them and to finalize the details of the documentation,'' he said. Goodyear declined to comment on the negotiations.
While these discussions are at an advanced phase, the spokesman cautioned that the deal ``is in progress, but it is not a reality yet.'' He added that an agreement is expected to be final by the third quarter.
Yaroslavl Tyre, located in Yaroslavl northeast of Moscow, is considered Russia's second-largest tire maker, with a reported annual capacity of 4.9 million passenger, truck and farm tires.
Goodyear declined to comment on negotiations, but earlier this year said it had secured an off-take source of tires for Russia.
Workers seek to reopen Goodyear plant
MEXICO CITY-Union workers at Goodyear's only tire plant in Mexico want the tire maker to change its mind about closing the facility.
Goodyear announced April 6 it was closing the Tultitlan facility-Compania Hulera Goodyear-Oxo S.A. de C.V.-located outside Mexico City, because of high costs. The company said it explored other options concerning the plant but none were feasible. The shut down put 1,500 workers out of work. Goodyear said it is seeking work for as many employees as possible at its two non-tire facilities in Mexico.
As part of the closure talks, labor representatives have asked the company to reopen the plant. The union also asked for an increase in severance pay to offset the impact of the closing.
Goodyear, in turn, has asked the Mexican Labor Ministry to hold back $48 million in severance pay until an acceptable agreement has been reached, according to a Bloomberg News report.
Discussions between the two sides are continuing, and there is a possibility of changes to the financial package for the out-of-work employees, a Goodyear spokesman said. But he offered no hope for the plant reopening.