KANSAS CITY, Mo. (April 21, 2010) — Michelin North America Inc.'s decision to add aircraft tire retreading capacity at its Norwood, N.C., aviation tire plant will result in the closing of its existing aircraft tire retreading plant in Kansas City by next year.
Michelin announced on April 12 it will invest $11.3 million at Norwood to expand that plant and consolidate retreading capacity.
Closing the 67,000-sq.-ft. Kansas City plant will affect 90 employees there, Michelin said. The tire maker said it is working one-on-one with affected employees to detail the severance package, which includes pay and extended benefits.
The decision to restructure and consolidate the aviation operations supports Michelin's long-term emphasis on reducing production costs, the Greenville, S.C.-based company said. Consolidating aviation retread and new tire manufacturing takes advantage of significant economies of scale and existing synergies.
Michelin acquired the 380,000-sq.-ft. Norwood factory in 1989. It was built originally in 1987 by Uniroyal-Goodrich Tire Co.