Michelin unveils economic plans prior to Opelika plant closing

ERJ staff report (TB)

Opelika, Alabama -- Michelin North America Inc. has begun setting the groundwork for a program aimed at economic development and job creation in the Opelika/Lee County area prior to the closing of its plant there.

The program comes on the heels of the Greenville, South Carolina-based tyre maker's announcement in April that it will close its BFGoodrich tyre manufacturing plant in Opelika by Oct. 31 in response to an “unprecedented drop in market demand.”

The 46-year-old Opelika plant, which makes BFG- and Uniroyal-brand passenger tyres, has approximately 1000 wage and salaried workers. Before it recently began rolling back capacity there, the plant was producing about 14 000 units daily. The company will consolidate production at its BFG plants in Tuscaloosa, Alabama, and Fort Wayne, Indiana.

As it gears up for the official program launch on Nov. 1, the company's Michelin Development unit is focusing on new job creation by facilitating low-interest loans-as low as charter bank prime-to qualified start-up, small- and medium-sized businesses. In addition to the financial support, Michelin said it's strengthening the development of new and existing businesses by providing free access to the firm's in-house business expertise.

Michelin Development Director John Tully has started meeting with key business and government leaders in the Opelika community to understand the needs and opportunities in the region, according to the tyre maker. He also will lead the establishment of a Michelin Development Steering Committee, specific to the region, which will govern the program.

“I look forward to adding the resources of Michelin Development to the already active economic development programs under way in Opelika,” Mr. Tully said in a prepared statement. “Mayor (Gary) Fuller and his team have been very welcoming. We will work with them and other leaders at the local and state level to support economic growth and job creation in the region.”

Over the next few months, Michelin Development will solidify relationships with local banks to provide the low-interest loans that it said are a cornerstone of the program. Additionally, a specific Michelin Development Web site is under construction and will launch before the program officially kicks off in November.

Michelin said by providing loans at prime interest rates, the program will focus on creating quality, sustainable jobs for the community. Loans will be available to all sectors of business-except straight retail-at amounts of $10,000 and up and will have 3- to 5- year payment terms.

From Tire Business (A Crain publication)