Michelin to optimise output at 2 plants in France

Clermont-Ferrand, France -- Groupe Michelin is planning to revamp two of its plants in France, concentrating their production on one type of tyre each to improve their competitiveness.

The French tyre maker presented the plan to the secretary of the Central Workers Committee at its plants in Bourges and Cholet.

Michelin intends to transfer light truck tyre output from Bourges to Cholet and concentrate production at Bourges on radial aircraft tyres.

This change will make both plants "benchmark production centres in their respective lines in Europe", Michelin said, and "enhance their technological excellence and competitive edge".

The transfer, for which Michelin has budgeted $29 million (€23.1 million), will increase Cholet's annual capacity for light truck tyres by 60 percent to about 4 million units, boosting the plant to a size large enough to "resist competitive pressure on the world market", Michelin said.

Two-thirds of Cholet´s production is exported, Michelin said.

At Bourges, the tyre giant will invest $21.4 million starting next year to double capacity for radial aircraft tyres, supporting what the company calls a "massive switch" to radials by the commercial and military aircraft industry.

Michelin has invested nearly $14 million in Bourges over the past four years in a drive to make it the "world´s benchmark" for radial aircraft tyres, it said.

By 2008, the plant will account for more than half of Michelin´s radial aircraft tyre production.

Michelin did not say what effect the changes will have on employment, but did say the project is a further step in its strategy of optimising its industrial facilities in France in order to have a competitive and sustainable production base in the country.

From Rubber & Plastics News (A Crain publication)