Michelin's Italian cutbacks to cost €80 million

ERJ staff report (DS)

Paris -- Michelin has said its restructuring efforts in Italy will cost about Euro 80 million. On October 28, 2008 Michelin presented a plan intended to make its operations in Italy, "more competitive."

At the time, the company said tyre production will end at its tyre plant at Stura by the end of next year (2009). The unit will continue to manufacture semi-finished products and operate its logistics center, following the transfer of the Vercelli warehouse. Michelin said it would implement a job-creation programme familiar to other locations where the company has closed factories. The Michelin Group has pledged to offer a new position to each employee concerned by these measures and to create the same number of jobs in the local area as will be eliminated.

On the investment side, Michelin said it would significantly increase production capacity at the car tyre plant in Cuneo, near the French Alps, to make it Europe's largest premium passenger car tyre production facility.

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Press release from Michelin