CLERMONT-FERRAND, France — Group Michelin is planning to shut two plants in France over the coming 15-18 months, due to the “profound transformation” of passenger and truck tire markets in Europe over the past decade.
In a statement, Michelin said it will be closing its 54-year-old passenger and light truck tire plant in Cholet and a metal reinforcement products unit in Vannes by early 2026 “at the latest.”
The closing disclosures are in addition to company plans to close factories in Karlsruhe and Trier, Germany, and phase out truck tire and semi-finished product production in Homburg, Germany, by year-end 2025.
The latest decision will impact 1,254 employees, to whom Michelin said it would provide support, according to its Nov. 15 announcement.
Explaining the closures, Michelin said the European passenger/van and truck tire markets had been “moving strongly toward low-cost tires mainly from Asia,” over the recent years. The Cholet plant is rated at 15,000 units a day.
In the space of 10 years, it said, the market-share of entry-level passenger/van and truck tires increased by 9 and 11 percentage oints respectively, to the detriment of premium product sales.
“This situation has led to structural production overcapacity in some Michelin passenger car-van and truck tire plants in Europe,” it added.
As it stands, Michelin said it had voluntarily stopped production at both sites until Nov. 11 to allow management and unions to offer collective and individual discussions to employees.
Michelin said it expects to record a provision of $365 million in non-recurring charges linked to the closures in its fiscal 2024 consolidated accounts.
