Michelin adjusting North American plant production

Tire Business staff report

Greenville, South Carolina - Michelin North America Inc. plans to make production adjustments to reduce inventory in some of its US and Canadian factories in response to what it called “unprecedented deterioration in market conditions, particularly in the original equipment markets.”

The Greenville-based tyre maker said its “priorities in this crisis are respect for employees, as well as the long-term health of the company.”

Michelin will reduce its production schedule in the following manufacturing facilities (most which supply OE manufacturers):

Greenville (passenger and light truck tyres): 45 production contractors will be released this month; beginning 1 March and continuing for four weeks, 870 wage employees will have their schedules reduced by approximately 10 hours per week.

Lexington, South Carolina (passenger and light truck tyres): The plant will reduce its production over the next eight weeks; available employees from the passenger tyre factory will be used to fill open positions for the company's earthmover tyre production on the site; 43 contractors will be released this month.

Ardmore, Oklahoma (passenger and light truck tyres): 120 contractors were released mid-November; beginning 13 Feb. and continuing for eight weeks, 1,455 wage employees will have their schedules reduced by 12 hours every two weeks.

Spartanburg, South Carolina (truck tyres): 32 production contractors and 15 mechanical contractors were released in November and December; beginning the week of 8 Feb. and continuing for eight weeks, 835 wage employees will have their schedules reduced to an average of 35 hours per week.

Waterville, Nova Scotia, Canada (truck, small over-the-road and earthmovers tyres): 95 flex employees will be temporarily laid off, effective 1 April; since January 2008, the company has reduced one 12-hour shift every four weeks for flex employees and eliminated overtime for full-time employees.

Michelin said it “remains a healthy company on sound financial footing. These recent actions to reduce our costs are helping us weather the crisis. We are continuing to monitor the economic and market situation, which is unpredictable. Further actions may be necessary.”

The company employs 22,300 and operates 19 major manufacturing plants in 17 locations.

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Staff report from Tire Business (a Crain publication)