Michelin closes tread pressing plant in Mexico

ERJ staff report (TB)

Querétaro, Mexico -- Michelin North America Inc. closed its commercial truck tread pressing plant in Querétaro, Mexico, effective yesterday, due to overcapacity in its North American retread operations.

The Greenville, South Carolina-based tyre maker said production from the Michelin Retread Technologies (MRT) plant in Querétaro, which employs approximately 80 people, will shift to the company's retread plant in Covington, Georgia.

Michelin said the decision has no impact on the continuing operations of its passenger car and light truck tyre plant in Querétaro.

Because the commercial truck tyre retread market has not achieved the growth anticipated by North American industry forecasts-thus resulting in overcapacity-Michelin said it is restructuring its North American retreading operations to respond to market demand.

While the Querétaro plant's operational performance “has been excellent, financial and market factors make this decision necessary to maintain the long-term health and competitiveness of the company. Michelin is working with employees to help them make as smooth a transition as possible,” the tyre maker said.

From Tire Business (A Crain publication)

Press release from Michelin