Michelin 'significantly' cuts tyre production

ERJ staff report (TB)

Clermont-Ferrand, France -- Group Michelin said it has “cut back significantly” on operations at most of its plants worldwide because of the continuing global recession.

Michelin said November brought a sharper month-on-month decline in demand for tyres in European, North American, Asian and South American markets.

Michelin said the move will result in costs of about Euro 150 million from under-utilisation of capacity. The tyre maker further said it is “taking the necessary steps” to manage inventory and maintain flexibility into 2009.

From Tire Business (A Crain publication)

Press release from Michelin