1093 jobs affected by Michelin restructuring in France

ERJ staff report (DS)

Paris -- Groupe Michelin is re-structuring its operations in France, affecting around 1100 workers, though the company says there will be no lay-offs. Around half of these will take early retirement, while another 500 will be offered jobs at other Michelin facilities.

Michelin is to modernise its R&D centre at Clermont Ferrand with an investment of over euro 100 million and will modify its operations to make its French factories more specialised. One small plant will close. The aim, said the company, is to make the company more competitive in a tough economic environment.

The investment in Clermont R&D centre is focussed on accelerating product innovation and bringing new products more quickly to market. It will also improve Michelin's production processes.

In terms of increasing specialisation, the factory at Montceau-les-Mines will become a major centre for off-road tyres aimed at the civil engineering and construction industries and will become one of the two largest rubber mixing centres in Europe. The existing operations in consumer tyres will be phased out and the capacity spread among other factories in West Europe. Michelin has budgeted around euro 50 million for these changes.

Michelin's plant at Tours will become a main centre for the production of heavy truck tyres, and will be a key centre for production and high technology in these products. However, the existing mixing operations at Tours will be closed, with compounds being shipped from the new centre at Montceau and the plant at Cholet. This will involve an investment of euro 15 million.

The UHP car tyre plant at Seclin in Northern France will close. Production will be transferred to Gravenches, close to Clermont-Ferrand. 

The plant at Cholet will become a pole for the production of light truck tyres and 4x4 tyres. This will involve transfer of production of these products from other factories in the European region.

Michelin said 1093 people would be affected by these moves. Of these, 495 will take early retirement, linked to pre-retirement phase-down while 598 will be offered other jobs within the Michelin group, Michelin said it sincerely wants these people to continue working for Michelin and each will be offered at least two other jobs in the company.

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Press release from Michelin

Michelin to Cut 2,900 Jobs in French Reorganization Bloomberg (France)